DIFC 359/2019

Kyle v The Kaitlyn Investment Office

This case involved whether it was possible for a company to refuse to pay an end of service gratuity to an employee who was also a founding partner in a UK entity related to the company, as it was stated the founding partner had failed to pay loan notes as agreed under an investment agreement. A key aspect included whether there had been consent to the deduction and if the DIFC court had jurisdiction to hear the counterclaim on the outstanding loan notes.

Background

The Claimant Kyle was an individual filing a claim against the Defendant on his employment at the Defendant company which was a company registered and located in the DIFC.

They were employed under an employment contract dated 19 October 2017 with a commencement date of 9 November 2017.

They resigned and their last working day was on 13 June 2019.

On 21 July 2019, the Claimant filed a claim in the DIFC Courts' Small Claims Tribunal claiming end of service entitlements of 77,500. AED

By 29 July 2019, the Defendant filed an acknowledgment of service with an intention to defend the claim and filed their defence.