DCC 25/1998

This case involved a claim for earnings and compensation following an alleged constructive dismissal. Key elements in the case were whether if the basic salary remained the same, but an individual had been demoted and now had less opportunity to earn commission constructive dismissal had taken place. The case also looked at whether commission should be included in the calculations for compensation.

Background

A claim was brought against an insurance company ordering it to pay 125,679 AED for earnings and compensation which was due under the Labour Law. The Court of First Instance ordered the defendant to pay 74,951 AED. Both parties appealed and the appeal court rejected the defendant's claim and increased the amount payable to 103,243 AED. It also ordered the defendant to give the claimant a certificate of experience. The defendant appealed by cassation arguing that the court had considered commission as salary although the contract did not provide for this. It further argued the court was wrong to find there had been arbitrary discharge as the claimant had resigned due to a change in his position which he viewed as a demotion, despite there being no change in salary.

Decision