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02 May 2024

Emirati wins pension case against firm

Published
By Staff

A court in Abu Dhabi supported a bid by an Emirati ex-employee at a private company to have his pension resumed after it stopped paying him in 2009 on the grounds he is not entitled for pension.

The company had employed the unnamed man in 1979 and terminated his services in 1996, when it gave him a choice whether to get his end of service benefits or receive a monthly pension of Dh20,000.

After choosing pension, the company continued to pay him the sum until it decided to stop payment in May 2009.

“The company said the man is not entitled to pension on the grounds the UAE did not have any pension laws when he was employed in 1979 and that he left the company in 1996 before laws introducing pensions in the private sector were enforced,” 'Emarat Al Youm' newspaper said.

“But the court of Cassation dismissed this argument, saying that the company had given him a choice between an end of service benefit and pension and that he chose pension…it said the company had committed itself to paying him pension and must stick to that commitment.”