DCC 41/2001
Type
Case
Court
Dubai Court of Cassation
Jurisdiction
Dubai
Taxonomy
General Company Law & Business Entities, Pay, Benefits & Tax, General Employment & Labour Law
Copyright
LexisNexis
Decision date
30 Sep 2001
Catchwords
Company Owner – Company Investor – Employee – Unpaid Salary
This case involved a medical centre employee who had resigned because he had not been paid his salary. The employee had taken the case against the centre, its owner and an investor in it. The key issue was which of these parties was liable for the salary. The fact the owner had knowledge of investment activity with the investor did not remove his joint liability to pay the salary.
Background
An employee filed a case against a medical centre and its owner and one investor in it and requested the court order them to jointly pay 40.833 Dirhams and annual interest. The employee stated he had started working with the centre on 04/05/1999 and had resigned on 27/11/1999 because he had not received his salary.
The court rejected the case against the third defendant (the investor). The court ruled owner should pay the employee 9909 AED, the value of a flight ticket and 9% annual interest.