UAE school tells teachers it can't pay July salaries

Our Own English High School in Fujairah has been in a legal dispute with the school's landlord since March 2018
UAE school tells teachers it can't pay July salaries
By Lubna Hamdan
Tue 02 Jul 2019 08:57 AM

Our Own English High School in Fujairah, a GEMS Education school, has warned it will not be able to pay teachers their salaries for the month of July “at the current time”, according to a letter sent to teachers by school authorities and seen by Arabian Business.

The document shared with teachers cites a legal dispute with the school’s landlord as the reason it is “unable to access sufficient funds to pay all of its liabilities”.

It said the dispute has led to the “freezing of the school’s bank accounts and the prohibition of access to the cash room”.

GEMS Education confirmed the dispute in a statement to Arabian Business: “We can confirm there is an ongoing legal dispute with the landlord of the school since March 2018. Unfortunately, actions by the landlord have resulted in many administrative disruptions at the school, including the prohibition of access to funds. Despite this, we have paid staff salaries for June as usual.”

A spokesperson from the group refused to divulge further information but said the school in Fujairah is currently working to resolve the dispute and resume regular operations.

“We are working vigorously to try to resolve the dispute with the landlord through legal and other avenues so that we can resume normal operations. As the matter is sub-judice we cannot comment any further at this time,” the GEMS Education spokesperson said.

GEMS Education, which is headquartered in Dubai, is one of the world’s oldest and largest private education providers. Founded in 1959, it owns and operates 49 schools and educates over 124,000 students in the Middle East and north Africa. In 2014, a consortium of investors, including US private equity firm Blackstone, Dubai-based Fajr Capital and Bahrain’s Mumtalakat Holding Company bought a minority stake in the education provider.

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