DCC 13/2003
Type
Case
Court
Dubai Court of Cassation
Jurisdiction
Dubai
Taxonomy
Termination of Employment, Lending & Security, General Pensions Law, Pay, Benefits & Tax
Copyright
LexisNexis
Decision date
12 Apr 2003
Catchwords
Unfair Dismissal – Unpaid Loan to Employee – Pension – Severance Pay – Employee Loan
This case involved a claim for unfair dismissal by a bank employee and a counter claim that the employee pay a loan. The bank successfully argued they should not have to pay severance pay as they had already made a payment into a pension for the employee.
Background
An employee filed a case against a bank and requested the court order the bank to pay 83748 AED and annual interest. The employee stated he had started working with the bank on 16/05/1998 and that was unfairly dismissed on 28/04/2001. The employee stated the bank had refused to pay his dues.
The bank requested the court to order the employee to pay 76239.4 AED of the remaining value of a loan the employee had received.
The court rejected the bank's case and ruled the bank should pay the employee 83748 AED and 9% annual interest.
The bank appealed the ruling before the court of appeal. The court abandoned the appealed ruling and ruled he employee should pay the bank 46531.04 AED and 9% annual interest.
Decision