Court orders company to pay a former employee Dhs280,000 in compensation
The latter had worked for the company for approximately 25 years. However, there was a delay in the payment of the monthly wages, and the end-of-service gratuity was also unpaid despite the termination of the employee's contract.
Specifically, an employee initiated legal proceedings against his employer requesting that the court order the defendant to pay him the following sums: the outstanding balance of his wages, expenses incurred in the course of the legal action, and the costs of the enforcement process.
The employee initiated legal proceedings on the basis of his claim that he had been in the employ of the company for a period of approximately 25 years, receiving a monthly basic salary of Dhs7,000, and the full salary is Dhs14,000. The employee demanded an end-of-service gratuity of Dhs165,667 and back salaries of Dhs205,900.
The Court determined that the case documentation did not contain any evidence to suggest that the company was not liable for the requested wages, thereby affirming the employee's right to receive the delayed wages amounting to Dhs212,433. Following the acknowledgement by the employee of payment amounting to Dhs91,411, subsequent to the deduction of the aforementioned amount, the employee would be left with a remaining balance of Dhs121,022. In view of the fact that the individual in question specified his request at Dhs114,489, the court was obliged to rule on this amount.
The Court further explained that Article 51 of the Labor Law stipulates that an employee who has completed one year of continuous service with their employer is entitled, upon the end of their service, to a gratuity.
The amount of this gratuity is determined in accordance with the standards and cases stipulated in the aforementioned article. Given the aforementioned facts, and in consideration of the employee's 25-year and two-month tenure with the company, the employee is eligible to receive a compensation amounting to Dhs165,667.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Gulf Today
16 hours ago
- Gulf Today
Employee steals Dhs119,000 from workplace in UAE, told to return the money
The Al Ain Civil, Commercial and Administrative Cases Court ordered an employee to pay Dhs119,965 to his employer . It was established that the accused had accumulated monetary sums during the period of his employment, yet he had not disbursed the aforementioned amounts. Specifically, a company initiated legal proceedings against an individual who had previously been employed by it. The final requests made by the plaintiff were limited to a ruling obliging the defendant to return the sums he had embezzled, amounting to Dhs128,966. The plaintiff also requested the costs of issuing a consulting report detailing the sums embezzled, legal interest at a rate of 5 per cent from the date of the lawsuit until full payment, and fees, expenses, and attorneys' fees. The company initiated legal proceedings on the basis that the employee had been employed by it for approximately nine years, receiving a total monthly salary of Dhs5,500, with a basic monthly salary of Dhs3,300. The termination of the employment relationship had indeed occurred, however, the employee had declined to remunerate the company accordingly. The Court ordered the assignment of an expert to audit the accounts, the results of which were submitted in a report. The report concluded that the employee had owed amounts as a result of failing to pay instalments that he had collected in cash from the company's clients. Following the company's review of the employee's objections, the auditor determined that the outstanding debt owed by the employee for documents he had issued and collected in cash instalments from clients, but not deposited with the company, amounted to Dhs119,965. In its ruling on the employee's request to return the amounts he had embezzled from the company's clients, the court explained its decision. The court established that there was a business relationship between the employee and the company, and that the outstanding debt owed by the employee for documents he had issued and collected cash instalments for from clients, but had not deposited with the company, amounted to Dhs119,965. Therefore, the court ruled that this sum should be returned to the company.
Gulf Today
3 days ago
- Gulf Today
Court orders company to pay a former employee Dhs280,000 in compensation
The Abu Dhabi Labor Court-First Instance has ruled that a company be obligated to pay Dhs280,156 in compensation to one of its employees. The latter had worked for the company for approximately 25 years. However, there was a delay in the payment of the monthly wages, and the end-of-service gratuity was also unpaid despite the termination of the employee's contract. Specifically, an employee initiated legal proceedings against his employer requesting that the court order the defendant to pay him the following sums: the outstanding balance of his wages, expenses incurred in the course of the legal action, and the costs of the enforcement process. The employee initiated legal proceedings on the basis of his claim that he had been in the employ of the company for a period of approximately 25 years, receiving a monthly basic salary of Dhs7,000, and the full salary is Dhs14,000. The employee demanded an end-of-service gratuity of Dhs165,667 and back salaries of Dhs205,900. The Court determined that the case documentation did not contain any evidence to suggest that the company was not liable for the requested wages, thereby affirming the employee's right to receive the delayed wages amounting to Dhs212,433. Following the acknowledgement by the employee of payment amounting to Dhs91,411, subsequent to the deduction of the aforementioned amount, the employee would be left with a remaining balance of Dhs121,022. In view of the fact that the individual in question specified his request at Dhs114,489, the court was obliged to rule on this amount. The Court further explained that Article 51 of the Labor Law stipulates that an employee who has completed one year of continuous service with their employer is entitled, upon the end of their service, to a gratuity. The amount of this gratuity is determined in accordance with the standards and cases stipulated in the aforementioned article. Given the aforementioned facts, and in consideration of the employee's 25-year and two-month tenure with the company, the employee is eligible to receive a compensation amounting to Dhs165,667.
What's On
3 days ago
- What's On
Save up to 10% on your first home purchase in Dubai
Launched just two weeks ago, this government-backed initiative is a collaboration between the Dubai Land Department (DLD) and the Department of Economy and Tourism, aimed at making homeownership more accessible, especially for first-time buyers. Leading developers, including Emaar, Nakheel, Azizi, and Binghatti, have already signed up, pledging direct discounts on properties. Industry insiders suggest these discounts could reach as high as 10% on homes priced up to Dh5 million. So, whether you're considering a cozy one-bedroom apartment or a spacious family villa, this programme could be the perfect opportunity to step into Dubai's property market. Am I eligible? You're eligible if you: Are 18+ and currently live in the UAE Don't own a freehold property in Dubai Want to buy a home under Dhs5 million Are applying alone or jointly (if all parties qualify) Own property in a non-freehold area? You're still eligible! Want to buy a home under Dhs5 million Once registered, you'll get priority notifications for new launches, whether or not you've found the right property yet. What perks do I get as a first-time buyer? No fluff. Here's what you'll actually get: Priority access to off-plan launches from top developers Discounted prices on select new properties Flexible payment plans, including DLD fee instalments via credit card Preferential mortgage rates from participating banks Faster mortgage approvals No extra cost to join the programme (you still pay standard DLD/Developer fees unless specified) Don't need a mortgage? You can still benefit from all property-related discounts. Who's involved? The Dubai First Home initiative is backed by some of the biggest names in real estate and banking. Developers: Emaar, Nakheel, Meraas, DAMAC, Danube, Azizi, Ellington, Dubai Properties, Majid Al Futtaim, Binghatti, Beyond, Wasl, Palma Holding have already signed up, and more are expected to join. These developers are offering direct discounts of up to 10% on selected properties priced under Dhs5 million. So far, 13 developers have officially signed on. Banks: Commercial Bank of Dubai, Emirates NBD, Mashreq, Dubai Islamic Bank, and Emirates Islamic are participating, each offering tailored mortgage products for first-time buyers. While mortgage interest rates remain stable at an average of ~3.99% for the first three years (before switching to a variable rate), some banks are offering reduced processing fees and may waive valuation costs under the programme. Is it worth it? Short answer: yes. First-time buyers could save Dh8,000 to Dh10,000 in reduced bank fees over the first few years, thanks to waived or discounted charges. On top of that, developers are offering up to 10% off property prices, plus flexible payment plans and faster mortgage approvals. And while mortgage interest rates haven't dropped yet, US rate cuts are expected later this year, which could lead to lower mortgage costs in the UAE, giving buyers even more long-term value. In short, this is a smart time to take your first step into Dubai's property market. I'm sold. How do I apply? You can register online now, via the official DLD website, and if you're not eligible, they'll let you know why so you can reapply later. Images: Unsplash > Sign up for FREE to get exclusive updates that you are interested in
