DCC 8/2010

This case involved a claim by an employee who had been dismissed that his dues be paid along with interest for late payment. It was argued under the Commercial Transactions Law interest could only be applied to commercial loans and paying annual interest violated sharia law. It was legal for interest to be levied to provide compensation for those who had suffered late payment.

Background

An employee filed a case against a company and requested the court to order the company to pay him 413.651 AED and annual interest of 9%. The employee stated he had started working with the company on 29/10/2006 and he was dismissed on 12/02/2009. The company had failed to pay his dues.

The court ruled the company should pay the employee 45130.795 AED and the cost of a flight ticket. The court also ruled the company should provide the employee with a certificate of experience and other documents it had received from him.

The company and the employee appealed the ruling before the court of appeal. The court changed the ruling and ruled that the company should pay to 233.299 AED and annual interest of 9% but rejected the other requests.

Decision