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26 April 2024

Sacked employee wins Dh21,797 compensation from hotel: Dubai Court

Published
By Mohammed El Sadafy

Dubai Court of Cassation issued a verdict in favour of an ex-hotel worker by asking the hotel to pay him Dh21,797 as reimbursement after he was terminated from work.

The court, in its ruling, stressed that the compensation amount includes Dh4,800 as ‘food' allowance for one year, pursuant to the employment contract that stipulates the right of the employee to receive ‘food' allowance in cash or kind.

Earlier, the worker had filed a case against the hotel demanding Dh29,000 in dues. He claimed that he had joined work at the hotel on a basic monthly salary Dh1,500, in addition to ‘food' allowance of Dh400 per month, but he was surprised when he was terminated after about a year.

The Court of First Instance ruled that the hotel pay him Dh19,500.

However, both the parties did not accept the verdict and moved the Court of Appeal, which reduced the amount to Dh16,997.

The worker did not accept the verdict and appealed before the Court of Cassation, which issued the above verdict in his favour.

The court based its verdict on Article 113 of Civil Transactions Act No. 5 of 1987.

The court explained that it was clear according to the documents that the hotel was obliged to pay ‘food' allowance’ under the employment contract signed between them. Thus, the hotel owner is committed to pay the worker in cash or kind.

The court added that in cases where there are no documents to prove that the hotel owner has not paid the allowance in cash or kind, then in such cases the hotels are obliged to pay in cash if they cannot do it in kind.