In a historic case, an employee working for a company based in the DIFC has been awarded a penalty payment expected to be in excess of 5.5 million Dirhams against his employer for non-payment of dues.

This ruling is likely to set a precedent that will ensure that employees working in the country get what is legally their right and within the set framework.

“The factual background [of the case] was quite complicated but could essentially be described as a breakdown in the relationship between two key individuals, one of whom was employed by the defendant and the other was the shareholder,” Jamie Liddington, Head of Employment at legal firm Hadef & Partners, told Emirates 24/7 while explaining the background of the case.

The claimant was employed as the managing director of the company until his employment was terminated on 30 June 2013. The claimant alleged that the defendant failed to pay his salary or provide his other employment benefits within 14 days from the termination date (as required under Article 18 of DIFC Employment Law).