Court of First Instance Ruling Sets New Legal Precedent which Binds the DIFC Small Claims Tribunal in Future Cases
Type
E-journal
Date
19 Apr 2016
Jurisdiction
Dubai International Financial Centre
Taxonomy
General Constitutional Law, Termination of Employment, Contract & Conditions of Employment, Pay, Benefits & Tax
Copyright
LexisNexis
Relevant company
Hadef & Partners
Legal reference
DIFC Law No. 3/2012
Analysis
The DIFC Court of First Instance (“CFI”) issued its decision in Asif Hakim Adil v Frontline Development Partners Limited (CFI-015-2014)(“Adil”) on 30 March 2016.
The Adil judgment is the first decision from the CFI which deals with the penalty payment under Article 18 of DIFC Employment Amendment Law No. 3/2012.
Background
Article 18 of DIFC Law No. 3/2012 provides as follows:
(1) An employer shall pay all wages and any other amount owing to an employee within fourteen (14) days after the employer or employee terminates the employment.
(2) If an employer fails to pay wages or any other amount owing to an employee in accordance with Article 18(1), the employer shall pay the employee a penalty equivalent to the last daily wage for each day the employer is in arrears.
Facts and Findings in Adil