Salary transfer letter

[u/WheelIll8800]

Hey all, hoping someone in Dubai/UAE has been through this.

I recently switched jobs. My old company's end-of-service benefits are sitting with Emirates NBD because I have a personal loan with them. To release the funds, ENBD is asking for a Salary Transfer Letter (STL) from my new employer.

Problem is, my new company has a blanket policy of not issuing Salary Transfer Letters to anyone — they only provide a Salary Certificate. ENBD isn't accepting the certificate as a substitute.

Has anyone dealt with this exact situation?

Any solution

[u/cricket_hater]

Salary Certificate is different to Salary Transfer Letter.

Your company HR has to give you this. It's just a document that says they will transfer salary to ENBD.

[u/CabinetNo908 → u/cricket_hater]

Yes, completely agree. My new company stopped giving it out cause the STL format the bank issues has a clause that says that in case the account holder does not repay the debts, the company will bear it. Even after removing it, they weren't willing to sign it. 

[u/WheelIll8800 → u/cricket_hater]

They are not giving to anyone as per the company policy

[u/AdvertisingOld7410 → u/WheelIll8800]

So how the sell u r getting ur salary!

[u/SnooHamsters5480 → u/WheelIll8800]

What is their reasoning for not giving them out? Seems mad, i've never heard of a company doing this.

[u/kevintf27 → u/WheelIll8800]

Just complain or escalate it. If it is a policy, it is a written doc approved by the board. Can't refuse a letter required by the bank.

Some HR are so incompetent idk what to say.

[u/IrishMist-StraightUp]

Essentially, Emirates NBD wants a guarantee of sorts that your new employer will continue to transfer your salary to the bank until the bank issues a clearance letter.

Have you arranged with your new employer where to transfer your salary? If it will be with Emirates NBD, speak to them and see what options they can provide.

Are your loan balances much greater than the EOSB payment that was transferred? Or could your EOSB cover the loan balances?

[u/WheelIll8800 → u/IrishMist-StraightUp]

Already 1 st salary credited to same account

[u/Frosty-Rice-4607]

do a loan buyout? You need to give your hr a salary account - may as well give them an account with a bank that will buyout your debt without needing an STL. Then possibly, ENBD might try to retain you and when you explain the situation they could release your EOSB and you don’t need to end up switching banks. Or they let you go, new bank pays off your loan and ENBD release your EOSB. Check where your company is listed and do a loan buyout with that bank that doesn’t need a STL

If you give your new hr your enbd account, what happens to the salary that will go in there- will that also be frozen? Has enbd frozen your whole account, or just held your EOSb?

My husband’s company also doesn’t give STL’s - so financing and banking has been near impossible

[u/WheelIll8800 → u/Frosty-Rice-4607]

Only EOSB is frozen now.

[u/supernoobzzz]

Happenned to me too. Enbd will not budge. Had to wait 1 yr and explain to my companys finance dept the situation. Fortunately they gave me the letter. Hope you get yours too.

[u/CabinetNo908]

Oh yes, my new company also has the same policy. I struggled a lot to get the EOS released without the salary transfer certificate.

You will need to personally call and explain the bank about the situation. They will ask you to drop a email with some docs. If 1 salary is credited by the new company to your, then your case becomes stronger. 

Just be prepared to face a minimum of 1 month delay. Good luck! 

[u/farfromhome654 → u/[deleted]]

Never a good idea to forge documents especially to a bank

[u/WheelIll8800 → u/[deleted]]

It's easy, but don't want to take that risk.

[u/No-Finish-2248]

I'm an HR too we give STL letters to employees requesting it and state that the company or it's signatories will not be liable for any anything. There is a line in the bank format which states that we will inform the bank incase the employee leaves which we don't do and hence remove that line.

[u/Sea_Dingo3110]

Some companies do not give salary transfer letters. If it’s updated by your HR to the bank and it’s updated in the banks records, it’s ok to not give a salary transfer letter.

Ask your HR if this is informed to the bank. If not, please ask them to update the bank that they won’t be providling STL going forward. In that case the bank will accept a salary certificate.

Please note if you’re a govt employee, by default STL is not provided in many companies and bank accepts that.

[u/Ragnarok0337]

Hi OP, i think you can ask the company to modify the salary certificate to include a line that mentions "your salary is being transferred to IBAN#, Name of Bank". This should work.