Termination of the lease contract for an employee who lost 50% of his salary due to Corona

"Markaz" confirmed that the security deposit will be returned upon the termination of the rental relationship.

Archives

The ruling of the Rental Disputes Settlement Center supported the request of a tenant to terminate his contract before the end of its term due to his being affected by the circumstances of "Corona".

The ruling to annul the lease contract was based on the Civil Transactions Law for the existence of an "emergency excuse", as the first paragraph of it stipulates that "one of the contracting parties may, for an emergency excuse related to him, request termination of the lease contract."

The center stated in the text of the ruling, that "the tenant has submitted a request to terminate the rental contract and is demanding a refund of the rental value, due to emergency circumstances that afflicted him and prevented his ability to continue implementing the contract, which is to reduce his salary by 50%."

The lessee demanded, through the lawsuit filed against the owner, to return the checks remaining on him from the rental contract, with a value of 30,000 dirhams, in addition to the rental insurance of 5,000 dirhams, and the return of the bounced check fines, which is 10% of the value of the bounced check, with a minimum of 2000 dirhams.

The lawsuit papers indicated that the tenant was able, through papers and documents, to prove that he was unable to continue with the lease contract, by providing a scanned copy of the salary reduction letter, after which his services were completely dispensed with.

The papers indicated that his salary decreased by 50% in the middle of the lease term, which he signed with the owner in January 2020, as the company reduced his salary last July, due to the spread of Corona, and its repercussions on the company he works for.

The ruling issued by the Center indicated that, by applying the law to the lawsuit request, it has been proven that the plaintiff’s source of income (the tenant) has been discontinued, and that he is not able to meet the rental value stated in the contract. The committee has canceled the lease contract from the date of this ruling, while obliging the defendant (the owner) to return the subsequent fee on the date of annulment or the checks drawn on it, after calculating the rental value until the date of the actual eviction and handing over the key.

Regarding the request to refund the security amount, the Center confirmed that it is legally decided that the security amount will be returned upon the end of the rental relationship, which requires that the lessor receives the property and inspects it, and if it is proven that it is free of damages, then he must return the security amount to the lessee.

As for check fines, it is one of the conditions in the contract, and it is agreed upon between the two parties. Therefore, the request for refunding the check fine was rejected.

Follow our latest local and sports news, and the latest political and economic developments via Google news