BCC 588/2007
Type
Case
Court
Bahrain Court of Cassation
Jurisdiction
Bahrain
Taxonomy
Rights & Duties of Employees & Employers, Litigation Procedure & Practice, Lending & Security, Limitation of Actions, General Civil Procedure & Administration of Justice, Pay, Benefits & Tax
Copyright
LexisNexis
Decision date
2 Jun 2008
Catchwords
Employee’s Rights – Interest – Employer’s Loan – Litigation Procedure – Statute of Limitations – Court Fees – Salary
This case involved a claim by an employee that their employer had wrongly deducted interest on a loan made to them from their salary. A key issue was whether a statute of limitations should apply in a case of this type.
Background
An employee made a complaint against a bank before the Ministry of Labour claiming that he was working in the bank and received a housing loan of 50000 Dinars. The employee said that the bank received an interest rate of 3.5% per annual in violation to Article 74 of the Labour Law which stipulated the employer had no right to received interest on loans granted to the employee. The Ministry referred the case to the court. The employee requested the bank to pay 15244.32 Dinars and a 10% interest rate.
The court ruled that the bank should pay the employee 15244.322 Dinars and a 5% interest rate.
The bank appealed the ruling before the court of appeal. The court upheld the appealed ruling.
Decision