I have resigned from my job and am working out my notice period. I have another job lined up and will start soon.
I don’t want my bank account to be frozen as I have bills to pay. Does my employer have to tell my bank that it is my last salary payment?
I also have a loan with the bank, although it is not big. Is there anything I can do to stop my account from being blocked? WS, Abu Dhabi
When someone receives their last salary payment before leaving a company, it is standard for it to be marked “final settlement”. The employer is obliged to do this, especially when they are aware someone may have outstanding liabilities such as a personal loan.
Once a bank is informed of a final salary payment, they are likely to freeze an account, especially when there are outstanding liabilities.
The reason for this is to prevent people from withdrawing their money and leaving the country without paying what they owe first.
The timescale for a bank to unfreeze an account varies. If the outstanding debt is small, some banks will unfreeze an account when presented with proof of a new job offer or a new employment visa.
In some cases, a bank will not unfreeze an account until the first salary payment is made.
In a situation where an individual expects an account to be frozen, it would be wise to withdraw some cash before the last salary payment is made so they can manage for a few weeks.
Having a good relationship with a bank and advising them of your circumstances may also be helpful as...
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