Legal View

Legal Remedy Best Solution when End-of-term Payments are Delayed

By K.k. Sarachandra Bose

Published: Tue 29 Dec 2009, 12:15 AM

Last updated: Mon 6 Apr 2015, 1:27 AM

Q: I have been working as a project engineer here for the past eight years on an unlimited contract. I am planning to go back to India and I have submitted my resignation. It was duly approved by the employer on condition that I find a suitable replacement, and collect some outstanding payment from the market because of staff shortage. My notice period is going to end within a couple of days but till today the company has not arranged for my dues, which includes a 3-month pending salary, one month retention salary and end of service benefits for eight years. Neither did they arrange to cancel my visa. I have requested so many times to release my pending salary but in vain. What is the procedure if they fail to pay my pending salary and benefits? Do they have the right to hold my entitlements until I collect the outstanding payment from the market? Can they compel me to work until they find a suitable replacement after the expiry of the 30-day notice period?

A: If an amicable settlement is not possible with your management I advise you to seek legal remedy by filing a complaint at the Ministry of Labour.

Q: My Company has to pay one of its suppliers an amount of Dh1.16 million, out of which Dh600,000 was done through cheques. However, the cheques got bounced. As per the company’s managing director, the accountant wrote a letter to the supplier saying: “Your payment of Dh1.16 million will be cleared in January 2009, as the managing director is out of the town”. The letter was stamped with the company seal, but the signature was of the accountant, as the managing director was abroad. I would like to know if the supplier can file a case against the accountant considering this letter. Is the accountant responsible for this payment? Can the police hold his passport?

A: In your letter you have not specified who had signed the cheques. If the cheques were not signed by the accountant, then the accountant is not liable for the bounced cheques. The accountant had issued the letter as part of his job therefore he is not accountable for the cheques issued by another person.

Q: I used to work with a contracting company here for three years on an unlimited contract. My visa expired on November 18, 2009. I got a good job offer with another company. I resigned on November 5 and left the working site on November 18. My head office promised to cancel my visa, saying they cannot affordable paying the package offered by the other company. They did not mention anything about the one month notice period. However, they have not yet cancelled my visa as the site people do not want to release me until I find a replacement. Is this legal? Can they force me to find a replacement even if it not stipulated in the employment contract? If I go to the labour court, will I have a problem for not working during the one month notice period? Will I have a problem with my expired visa?

A: As an employee it was your responsibility to issue a letter to the management stating your intention not to renew the labour contract with them. Since your visa has expired and the company management is not ready to cancel your visa I advise you to seek legal remedy by filing a complaint at the Ministry of labour.

– Compiled by Ahmed Shaaban

K.K. Sarachandra Bose is a Partner/ Corporate, Commercial and Contract Lawyer at Dar Al Adalah Advocates and Legal Consultants. Readers may e-mail their questions to: or send them to (Legal View), Khaleej Times, P.O. Box 11243, Dubai.

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