DIFC 053/2022
Type
Journal
Journal
Employment case monitor
Issue
2022
Page
3
Jurisdiction
Dubai International Financial Centre, Dubai
Taxonomy
Contract & Conditions of Employment, Payments on Termination, Restrictive Covenants & Confidential Information in Employment, Termination of Employment, General Competition Law, Employment Contracts, Terms, Allowances, Pay, Benefits & Tax, Receivership & Administrative Receivership
This case had involved an employee who was dismissed after the DIFC office of his firm had to close following a financial receivership. The key issue was whether it was right for deductions to be made from end of service amounts because of a commission advance which had been made following an amendment to the employment contract. The question of a non-compete clause was raised but not considered by the court as it was proven deduction of the commission advance had been correctly made.
Background
The Claimant was Lamis and, the representative office was located in the DIFC, Dubai, UAE.
The Defendant was Luthani, an individual who was employed at the Claimant company.
The underlying dispute arose over alleged advance monthly payments paid to the Defendant by the Claimant as set out in the letter of amendment dated 5 May 2017. The Amendment Letter was issued to the terms of the employment contract entered into between the parties on 28 April 2016.
The Defendant was terminated by way of a letter dated 26 July 2021 with the termination date set out to be 12 August 2021.