The Limitation Period for Labour Claims under UAE Law - When Does It Start?

Analysis

In Labour Action No. 105 of 2007 an Employee filed a claim against his employer (the Company) before the Dubai Court of First Instance seeking AED 339,086 in unpaid commission.

The Employee was hired by the Company in 2001 under an indefinite term employment contract on a monthly salary of AED 5,000 but with the promise of commission at 10% of the Company's net profit. The Employee alleged that the Company failed to pay him the full commission agreed upon for 2005 and 2006. The Employee lodged a complaint with the Labour Department, which was then referred to court.

Procedural History  

The Court of First Instance appointed an expert to determine whether the Employee was employed by the Company on a commission or monthly salary basis and the total commission to which he was entitled.

After receiving the expert's report, the Court of First Instance ordered the Company to pay the Employee the sum of AED 40,561 with 9% interest from the date of the claim (2 May 2007) until full payment.