Dubai Court backs employee for gratuity of Dh312,500
An employee has the right to the end-of-service benefits despite what employment contracts exist between him and the company, the Dubai Court of Cassation has stated in a new legal principle.
The court said that an employee has the right to a full end-of-service settlement if his service in the company is continued and not sporadic.
Dubai Court of Cassation issued the above verdict in favour of an employee with an end-of-service gratuity of Dh312,500.
The ruling is based on the text of Articles 137 and 139 of the law regulating labour relations.
The court said according to the articles the worker has the right to full amount gratuity if he works for more than five years.
The court added that the employee has a right to one-third of the gratuity if his service is not less than one year.
The worker will be deprived of end-of-service gratuity if he quits without informing the company and does not serve a notice period.
The case concerns an employee who sued his company demanding end-of-service benefits.
The plaintiff stated he worked for the company as Managing Director, with a monthly salary of Dh50,000.
He said he worked for almost six-and-a-half years, then he resigned.
He informed the company and gave them three months’ notice period .
The company didn’t accept the judgment of the Court of First Instance and challenged before the Court of Appeals.
The company demanded the granting of end-of-service gratuity for three years of service and said this was based on the most recent employment contract signed between the two parties.
The Court of Appeal dismissed the appeal and the company then challenged it before the Court of Cassation, which, in turn, rejected the appeal and upheld the judgment.
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