Two bankers stated that the banks have the right to fully deduct the end-of-service bonus for the borrower if he moved from one business to another, and the new destination for him was not included in the bank lists or classified, allowing employees to take funds. He explained to «Emirates Today» that the banks consider the end of service reward as a guarantee of the loan in addition to checks, and there is usually an agreement between banks and business parties during the opening of accounts for employees that includes transferring the end-of-service bonus.
And they confirmed that the entities that do not commit to transfer end of service benefits are not included in the lists, and therefore if the customer moves to them even if he gets a higher salary, he cannot recover the end of service reward from his old work.
In turn, dealers confirmed that banks have deducted the value of the full end-of-service reward when they move to new business entities, as a guarantee of payment of loan installments that are not yet due.
In detail, the doctor (Marwa A.) said: “I have been working in a medical agency for four years, during which I took a personal loan, and his balance remains 60 thousand dirhams, then came an opportunity to work with a higher salary in a private hospital and provided the bank with all the documents that benefit it, However, he deducted the full amount of the end of service, and did not recognize my new employer. ”
The customer, Ali, said: “I worked as a lawyer for more than six years with a large company, and I took a loan from the bank where my salary is transferred, and when I moved to a new job in a better condition, the bank refused to return the end-of-service bonus and include it to the loan’s balance.” He asked, “If The customer was committed to paying and had a new job with a higher salary, so why would the reward be acquired to pay installments that were not yet due?
The customer (Akram.a) added that his bank deducted the end of his service from his workplace amounting to 90 thousand dirhams when he moved to a new job with greater benefits in another side, explaining that he went to the bank to inquire and was notified that there is instability in the new party, and therefore there is no guarantee Pay off the entire loan.
Duration of the loan
On the other hand, the banking expert Ali Darwish said, “If the customer moves from one job to another, if with a lower salary, the bank is obliged to extend the term of the loan, with additional profits being imposed for the new years, as long as the destination to which he moved is included in the lists allowed to borrow. Listed or classified, the entire end of service amount is used to reduce the balance due from the customer and deduct it from the monthly payments, in which case both the bank and the customer will benefit.
Darwish explained that the end-of-service reward is a guarantee of the loan besides the signed checks, and the entities not included in the bank’s lists are not obligated to transfer the end of their employees ’services, so the discount is the only way to guarantee banks’ funds, pointing to the existence of humanitarian cases that are taken into account for customers such as the arbitrary termination of employee services , If the latter provides evidence to that effect, and some banks cooperate by granting the customer a portion of the end-of-service gratuity to manage his affairs, but these cases cannot be generalized or measured.
For its part, the banking expert Awatif Al Harmoudi said, “The conditions for opening the account and taking funds are usually accompanied by the commitment of the client and his business to transfer the end-of-service bonus as a guarantee of the loan, and this gives confidence to the customer’s side and the credibility that makes it listed and classified in the lists of banks. Or the end-of-service reward, as this cannot be included or granted to its employees due to the lack of guarantees against lending to it, even if the salaries thereof are higher than other parties.
Al-Harmoodi added: “Another thing that must be taken into account is that the bank looks at the number of years of service to calculate the end-of-service gratuity, and therefore the presence of the borrowing customer in a new job means that there is no previous balance for the end of his service in the new entity, in addition to the presence of employers with high job turnover, and these It is not included in the bank lists and its employees do not take financing, as a precaution to leave the customer at any time.
"Emirates Today" received complaints from employees who moved to a new job with higher salaries, and they provided the bank with evidence of that and their salaries were already transferred to the old account itself, but the full end-of-service bonus was deducted in favor of facilities they took during their previous work.
There are humanitarian cases that are taken into consideration for dealers