Background

Frontline had failed to make payment in lieu of Mr Adil's contractual notice period, and in respect of End of Service Gratuity, within the period of 14 days following the termination of Mr Adil's employment.

Article 18 of DIFC Law No. 4/2005 provided that ‘an employer shall pay all wages and any other amount owing to an employee within 14 days after the employer or employee terminates the employment', and ‘if an employer fails to pay wages or any other amount owing to an employee in accordance with Article 18(1) of DIFC Law No. 4/2005, the employer shall pay the employee a penalty equivalent to the last daily wage for each day the employer is in arrears.'

Decision

The Court dismissed Frontline's request to modify the language of Article 18 and to imply judicial discretion as to whether a penalty should be ordered. Frontline had asked the Court to read the word ‘shall’ as meaning ‘may’ therefore making payment of the penalty discretionary.