UAE Court Orders Company To Pay Ex-employee Dh89620 In Unsettled Dues
UAE Court Orders Company To Pay Ex-employee Dh89620 In Unsettled Dues. In a recent case that has grabbed attention in the UAE labour market, a private company was ordered by the Abu Dhabi Labour Court to pay a former employee a sum of Dh89,620 in unsettled dues. The court’s ruling affirmed the employee’s entitlement to unpaid commission, leave compensation, and other labour benefits.
The decision underlines the significance of understanding employee rights and the legal obligations employers must adhere to in the UAE. If you’ve found yourself in a similar situation or want to understand your rights better, this article will guide you through the key takeaways from this case, as well as provide insights into the legal framework surrounding employee dues and compensation in the UAE.
Overview of the Case: Former Employee Wins Labour Dispute
The legal battle began when the former employee, who had worked with the company for 13 months, filed a lawsuit seeking the payment of several dues. The employee, who was on a basic salary of Dh4,000 with a total monthly compensation of Dh10,000, claimed severance pay, annual leave allowance, commission for a completed project, and travel expenses.
After thorough review and deliberation, the Abu Dhabi Labour Court ruled in favour of the employee, awarding him Dh89,620 in compensation. The breakdown of the payment is as follows:
- Commission for Completed Project: Dh87,500
- End-of-Service Gratuity: Dh3,343
- Unused Leave Compensation: Dh2,120
In addition to these amounts, the company was also ordered to pay legal fees and provide a certificate of expertise. However, other claims made by the employee, such as the Dh1,000 travel ticket and severance pay of Dh10,000, were dismissed by the court. This ruling highlights the importance of clearly defined contractual terms and the employer’s internal policies when resolving such disputes.
Breakdown of the Employee’s Dues
| Claim | Amount (AED) |
|---|---|
| Commission for Completed Project | 87,500 |
| End-of-Service Gratuity | 3,343 |
| Unused Leave Compensation | 2,120 |
| Total Awarded | 89,620 |
Legal Precedent and Employee Rights in the UAE
The ruling serves as a key reminder that employees in the UAE have legal rights, particularly regarding commission, gratuity, and unused leave. As an employee, it is critical to understand what compensation is due when employment terminates.
In this case, the court emphasized that commissions, in the absence of specific contractual terms, should be determined based on the employer’s internal policies or prevailing agreements. It clarified that an employee is entitled to their commission if the work has been completed, even if no explicit agreement was made on the matter. This ruling reinforces the idea that employee entitlements can be based on company policies or industry standards.
Key Takeaways for Employees in the UAE
- Commission Payments: If your role includes commissions, ensure that the terms are clearly defined in your contract or agreed upon by both parties. In cases of ambiguity, the employer’s internal policies or prevailing industry practices may be used to determine the amount owed.
- Leave Compensation: Employees are entitled to receive compensation for unused leave days. As per UAE labour laws, employees should be compensated for any remaining leave days not taken during the course of their employment.
- End-of-Service Gratuity: When your employment ends, you may be entitled to a gratuity payment based on your length of service and final salary, as outlined in the UAE Labour Law.
- Legal Recourse for Unpaid Dues: If your employer fails to settle dues, you have the right to file a legal claim through the UAE Labour Court. A thorough investigation and the appointment of an accounting expert can help in ensuring the payment of the rightful amount.
What Led to the Court’s Decision?
The defendant in the case argued that all dues had been paid into the employee’s bank account. However, the court appointed an accounting expert who reviewed the relevant documentation and testimonies. The expert concluded that the employee was indeed entitled to commission for a completed project, totalling Dh87,500, as the project had been completed before the employee’s departure.
The court accepted the expert’s report, citing its detailed methodology and thoroughness. The court’s decision reinforces the need for both parties to maintain accurate records and transparent communication during the course of employment.
How Employers Can Avoid Such Disputes
Employers in the UAE can take several steps to avoid such disputes, ensuring compliance with labour laws and maintaining a harmonious working environment. Here are some recommendations:
- Clear Employment Contracts: Employers should ensure that the terms and conditions of commission, leave, and other benefits are clearly defined in the employment contract. A well-drafted contract can help both parties avoid misunderstandings and disputes.
- Maintain Transparent Records: Proper record-keeping is essential to prevent potential disputes. Employers should maintain clear documentation of leave days taken, commissions earned, and any other compensatory entitlements.
- Internal Policies: Employers should have clear internal policies that outline how commissions, leave entitlements, and other benefits are calculated and paid out. These policies should be shared with employees to ensure transparency.
- Regular Audits: To ensure compliance with legal requirements and internal policies, companies should conduct regular audits of employee accounts, especially when it comes to leave balances, commission payments, and end-of-service gratuities.
FAQs About UAE Court Orders Company To Pay Ex-employee
What is the process for claiming unpaid dues in the UAE?
Ans: To claim unpaid dues in the UAE, employees can file a complaint with the UAE Labour Court. The process involves submitting documentation related to the unpaid dues, including salary records, leave balances, and any communications with the employer. An expert may be appointed by the court to investigate the claims before a ruling is made.
How is commission calculated for employees in the UAE?
Ans: In the UAE, commission is typically calculated based on the terms outlined in the employee’s contract or the employer’s internal policies. If no explicit terms exist, the commission can be determined based on industry standards or any prior agreements between the employer and employee. If a project is completed before the employee’s departure, they are entitled to commission for that project.
What happens if an employer refuses to pay end-of-service gratuity?
Ans: If an employer refuses to pay end-of-service gratuity, the employee has the legal right to file a complaint with the Labour Court. The court will investigate the matter, and if the employer is found at fault, they may be ordered to pay the outstanding gratuity along with any other dues, such as unpaid commission or leave compensation.
Conclusion
This case highlights the crucial need for both employers and employees to be aware of their legal rights and obligations in the UAE labour market. While disputes can arise, having clear agreements, transparent records, and a solid understanding of the law can go a long way in resolving such issues without the need for lengthy litigation.
