Employment Department E-Bulletin-October 2016
United Arab Emirates
Case Law Update Pierre-Eric Daniel Bernard Lys v Elesco Limited In the DIFC Court of First Instance, it was held that the Employee was terminated without cause and therefore awarded payment of his unpaid salary, bonus, end of service gratuity amongst other contractual payments claimed. The Claimant’s was terminated from his employment as CFO on 11 February 2014. The termination was communicated via email on 11 February 2014 and confirmed by way of letter dated 12 February 2014. A subsequent letter confirming the reasons for dismissal was provided on 17 April 2014. It was the Claimant’s case that the reasons given by the Defendant did not constitute ‘cause’ as defined by Article 59(A) of the DIFC Employment Law and therefore, that he should be entitled to remedies, including but not limited to: payment of unpaid salary; payment in lieu of notice period and vacation leave; reimbursement of business expenses, school fees and accommodation; payment of bonus and service gratuity; costs and interest. Buchanan v Commissioner of Police of the Metropolis (UK Employment Appeal Tribunal) In a case of ‘discrimination arising’ under s.15 Equality Act 2010 it is for the alleged discriminator to justify the specific treatment insufficient to show that the policy from which unfavourable treatment flowed was justified. Legislation and Practice The Ministry of Human Resources and Emiratisation will start implementing the newly launched wages protection decree from 3 October 2016 to ensure employees’ full payment of their salaries on time. This decree highlights companies with over 100 workers. Such companies must pay wages within a period not exceeding 10 days from the registered payday in the (WPS) wages protection system, if they fail, the ministry will stop granting them any additional work permits starting from the 16th day of delay. Administrative fines reach Dh5000 per worker’s delayed wage pay, stretching a maximum of Dh50,000 dirhams in events which include multiple workers protesting about deferred wages past 60 days. What we have been up to in September: Advising on a the validity of a non-compete clause; Advising on termination of employees when company in financial difficulty; Drafting Settlement Agreement for Senior Employee.