Dubai Court ruling re gratuity payments
 

A worker's end of service benefit should be calculated with respect to his total salary and not just the basic payment, according to a new ruling by the Dubai Court of Cassation.

The decision comes in a case where an employee sought dues of up to Dh159,000 from his employer, which was rejected by the Court of First Instance and later overturned another court.

Accusing the company of his arbitrary suspension, the employee in his lawsuit demands three months' salary as compensation for sacking him without notice, Dh11,000 as salary of the last month he worked, Dh22,000 as leave allowance and ticket to his home country and Dh82,000 as his end of service gratuity.

The plaintiff also claimed in the lawsuit that he worked in the company as a Director of Advertising and Editor of a magazine owned by the company.

However, Court of First Instance in its judgment rejected his lawsuit and ordered the employer to pay a total amount of Dh54,000 to the employee.

The employee appealed against the verdict to the Court of Appeal which ordered the employer to pay the value of a return ticket to the complainant's home country in addition to the amount ordered by the earlier court.

The prosecution also appealed against the ruling on the basis that the end of service benefit of the employee was calculated only on according to the basic salary of worker, which it said was against the labour law.

The Court of Cassation accepted the appeal and directed the case to the Court of Appeal asking for a new panel judges to look into the case.

The Court of Cassation observed: "The pay in accordance with the provisions of Article I of the Labor Law includes all that a worker receives as emolument, whether in cash or in kind, hence the gratuity should be calculated according to the entire amount received by a worker, including his monthly commission."


Source: http://www.zawya.com/story.cfm/sidZA...emailmarketing

Re: Dubai Court ruling re gratuity payments
 

However, seeing as legal precedent doesn't apply here, there's no certainty that the next similar case will have a similar result. Nevertheless, this finding could be adduced in evidence for persuasive purposes. It may be relevant to note that the case is in relation to "arbitrary suspension", perhaps further limiting the applicability of the principle in other cases.

Re: Dubai Court ruling re gratuity payments
 

True, but it's an interesting ruling nonetheless.

Re: Dubai Court ruling re gratuity payments
 

Yep, didn't mean to detract from that.:D

Re: Dubai Court ruling re gratuity payments
 

The case also backs up my previous advice about regular commissions being taken into consideration when calculating gratuities (as does the WPS) and also effectively gives other employees in the same situation the right to take their employer to court.

Re: Dubai Court ruling re gratuity payments
 

It doesn't apply in Scotland either...though it is a feature of English/Welsh common law.

Re: Dubai Court ruling re gratuity payments
 

I think you'll find it does, or were you having a dig at something?

Re: Dubai Court ruling re gratuity payments
 

If you are refering to Scottish legal precidents, then no, a Scotish case cannot be cited in an English court. Two very different legal systems.

Re: Dubai Court ruling re gratuity payments
 

Hi Meow, what's your definition of regular commissions? (I have an annual bonus that is a direct percentage of the net profit of the company). Do you think that this should be factored into any gratuity payment if I am lucky enough to leave?

Re: Dubai Court ruling re gratuity payments
 

According to the conversations I have had with the Ministry of Labour they take it to mean something that is payable regularly and forms part of your contract of employment. The payment should be a regular feature such as monthly or quarterly commission payments. I don't believe that annual bonuses are generally included.

Re: Dubai Court ruling re gratuity payments
 

That's good news- can only make a case in Abu Dhabi stronger, right?
I'm in a situation where pay structure is jiggery-pokeried in order to minimise exposure to tax.

It also means my basic is less than my housemaid's though...

Re: Dubai Court ruling re gratuity payments
 

It certainly won't make it weaker, but I don't know if you can adduce as persuasive evidence in an Abu Dhabi court a decision of a Dubai court. Anyone?

Re: Dubai Court ruling re gratuity payments
 

of course you can, it is the United Arab Emirates after all ;)

Re: Dubai Court ruling re gratuity payments
 

In the same way that Scotland is in the United Kingdom;)

Re: Dubai Court ruling re gratuity payments
 

Forwarded to our HR - will see what happens... probably nothing.