DCC 35/2001

This case involved whether severance pay was payable to an employee whose service had ended. The employee tried to argue he was owed severance pay as his employment contract had not included a condition in it requiring him to choose between a pension or severance pay. This was invalid. He was not owed severance pay because he had already received payments from a pension scheme and was continuing to do so.

Background

An employee filed a case against a company and requested the court order the company to pay him 205200 AED and annual interest. The employee stated he had worked from 01/01/1986 to 13/06/1999 with the company. The employee stated the company had refused to pay his dues.

The court ruled the company should pay the employee 131.386 AED and 9% annual interest.

The company appealed the ruling before the court of appeal. The court abandoned the appealed ruling and rejected the case.

Decision