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UK company - contract with UAE company

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    UK company - contract with UAE company

    Hi,

    Currently exploring a possible contract opportunity with a company in UAE.

    Has anyone worked in this way (UK Ltd -> UAE Agency -> UAE Client)? I understand that legals are a little different than the UK and am therefore wondering if there is a recommended company to use for a contract review.

    Given my Ltd is the only onshore entity, I'd be responsible for determining IR35 status - so would need to make sure any contract signed is compliant as a starting point. The contract template I've had sight of doesn't look great, and I imagine a lot of amendments will be required before I'll be happy with it.

    To me it feels sensible to have two reviews - a commercial contract review, and an IR35 review? I'd use Qdos as usual for the IR35 review but I'd really appreciate any recommendations of who can review the contract to ensure I'm protecting myself and my business.

    TIA!

    #2
    Forgot to add - would be a remote role with the work done from home in the UK.

    Comment


      #3
      Has the UAE agency confirmed they will work with your UK LtdCo and what currency are they going to pay in/are you going to invoice in?

      I believe Merkel does full contract, rather than just IR35, reviews. However, if the jurisdiction of the contract is UAE then you'll need a firm that knows the law over there.

      IR35 shouldn't be a consideration if the UAE agency has no presence in the UK.

      Comment


        #4
        Yep, they've confirmed they'll work with my UK LtdCo. Payment currency - not sure at this stage, I've seen an example invoice they supplied which GBP, but worst case would be AED, and I'd need to get a foreign currency account (TransferWise, etc. have solutions for businesses). I guess either way I'll need to wear some risk with regard to fluctuations in the prevailing exchange rate.

        I've seen a contract template and it is indeed UAE jurisdiction (The applicable law is of England and Wales but supremacy is of one of the courts in Dubai), so would need to make sure everything is good and understand any risks to my LtdCo. For example, I've read that that termination clauses can be an problem in UAE - in that termination usually must be by mutual agreement, so would need both a termination clause and an explicit statement to say that.

        From an IR35 perspective - both agency and client would be wholly within UAE but my understanding is that that my LtdCo is still responsible for operating the IR35 rules? Could be a long term gig so don't want to assume any un-necessary risk as eventual liability could be high. The agency contract is likely to require changes from an IR35 perspective as there are clauses such as having to get client approval to take time off, which obviously are not conducive to being outside IR35.

        Comment


          #5
          if you're an IPSE member you have access to a contract template. Offer that to the agency. Saves a lot of effort and it is a fair contract for both parties. It is also written for UK law, which a UAE agency one probably isn't.
          See You Next Tuesday

          Comment


            #6
            In the 90's UAE employers had a practice of holding on to your passport. I have worked there. Not sure if it still exists. Probably there are exceptions based on Citizenship. Get it clarified too.

            Comment


              #7
              Originally posted by BigDataPro View Post
              In the 90's UAE employers had a practice of holding on to your passport. I have worked there. Not sure if it still exists. Probably there are exceptions based on Citizenship. Get it clarified too.
              they're gonna struggle if he never goes there
              See You Next Tuesday

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