New employer can't deny end-of-service benefits

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New employer cant deny end-of-service benefits

Dubai - An employee can claim unpaid salaries including annual leave salary within one year from the date such amounts are due

By Ashish Mehta

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Published: Sun 10 Sep 2017, 5:16 PM

Last updated: Sun 10 Sep 2017, 7:28 PM

I have been working at a restaurant for the past four years. Last year, my employer verbally promised to increase my salary but did not keep his word. Besides, my previous employer sold his shares to a new owner on April 21 last year. When I decided to quit my job, the new owner said they will only calculate end of service benefits from April 21, 2016. In this case, would I still be eligible for my four years of end-of-service benefits? Also, the company is not giving employees yearly tickets to home countries or paying leave salaries. What are my legal rights in this situation, vis-à-vis the new employer?
Pursuant to your queries, you are entitled to your end of service benefits including annual leave not availed, even though there is change ownership of the employer. This is in accordance with Article 126 of the Federal Law No. 8 of 1980 regulating Employment Relations in the UAE (the "Employment Law''), which states: "Where a change occurs in the form or legal status of the establishment, contracts of employment that are valid at the time of the change shall remain in force between the new employer and the employees of the establishment, and their service shall be deemed to be continuous.
Both the original employer and the new employer shall be jointly liable for a period of six months for the discharge of any obligations resulting from contracts of employment during the period preceding the change; after the expiry of this period the new employer shall solely bear liability."
Based on the aforementioned provision of law, your employer is responsible to pay all your end of service benefits and bear the air ticket.
An employee is entitled to a return air ticket from the employer once in two years (expiry of the contract) in accordance with Article 131 of the Employment Law.
Further, an employee can claim unpaid salaries including annual leave salary within one year from the date such amounts are due from the employer in accordance with Article 6 of the Employment Law, which states: "...In all cases no claim of any entitlement due under the provisions of this law, shall be heard if brought to Court after the lapse of one year from the date on which such entitlement became due..."
The aforementioned provision is not applicable for end of service benefits.
Ashish Mehta is the founder and Managing Partner of Ashish Mehta & Associates. He is qualified to practise law in Dubai, the United Kingdom, Singapore and India. Full details of his firm on: www.amalawyers.com. Readers may e-mail their questions to: news@khaleejtimes.com or send them to Legal View, Khaleej Times, PO Box 11243, Dubai.


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