Firm in UAE ordered to pay Dh1 million in end of service benefits to former employee


An Abu Dhabi firm has been ordered to pay Dh1million in unpaid salaries and other financial benefits to a former employee who served the company for seven years


Ismail Sebugwaawo

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Published: Tue 17 Mar 2020, 11:00 PM

Last updated: Wed 18 Mar 2020, 5:59 PM

The Abu Dhabi Labour Court ordered a Abu Dhabi based firm to pay financial dues that includes end-of-service gratuity and other benefits to its former regional manager based on the salary he was drawing at the time he joined the organization.
Official court documents stated that the European expat had joined the company in 2013 as a regional manager and was earning a monthly basic salary of $30,600 (Dh112,302). The man’s total pay, including all other benefits, was $39,100 (Dh143,497). His employer, however, did not register the employment contract that indicated his actual pay with the Ministry of Human Resources and Emiratisation.
The employment documents that was submitted by the company to the ministry quoted the manager's salary lower than what he was receiving. When he enquired from his employer about the discrepancy, he was told that it was just a formality and would not affect his actual pay.
After working for four months, the man said the company slashed his salary by 20 per cent without any justification and that the ministry was not notified about the changes.
When three more months elapsed, the man said his company issued him a termination letter without any valid reason. It was actually a ploy to reduce his salary further, he claimed. After the termination period, the management changed his job tittle to 'Consultant' and his salary was decreased to $11,000 (Dh40,370) despite the employee continuing to perform the same duties he was executing as a regional manager.
The employee’s lawyer had asked the court to appoint an expert to calculate the man’s end-of-service benefits based on his labour contract, which showed that he earned a monthly basic salary of Dh86,000 and Dh30,000 in allowances.
The expert report said the employee should be paid a total of Dh1million, including his pending salaries, end-of-service gratuity and other benefits, one-way business air ticket back home and so on.

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