DCC 54/2006, 58/2006
Type
Case
Court
Dubai Court of Cassation
Jurisdiction
Dubai
Taxonomy
Termination of Employment, Pay, Benefits & Tax, Contract & Conditions of Employment, General Pensions Law
Copyright
LexisNexis
Decision date
17 Dec 2006
Catchwords
Unfair Dismissal – Redundancies – Severance Pay – Pension Scheme – Employment Contract
The original dispute involved a claim by an employee who stated he had been unfairly dismissed for his dues. The dismissal was not unfair as the company had had good business reasons for making redundancies. However, the court had been wrong to rule the employee did not deserve severance pay because he had a pension scheme as this scheme was not covered in the contract of employment.
Background
An employee filed a case against a company and requested the court order the company to pay him 1.550293,45 AED and annual interest. The employee stated he had started working with the company in April 1980 and was dismissed from his job on 17/01/2004 without justification.
The court ruled that the company should pay the employee 834705 AED and 9% annual interest.
The employee and the company appealed the ruling before the court of appeal. The court changed the ruling and ruled the company should pay 962037, 79 AED and 9% annual interest.
Decision