Background

This appeal involved the interpretation and application of Article 19 of DIFC Law No. 2/2019,. Article 19 was located in Part 3 of DIFC Law No. 2/2019 entitled ‘Protection of Remuneration’. Article 19(1) of DIFC Law No. 2/2019 set out certain payment obligations upon an employer where an employee was terminated. Article 19(2) of DIFC Law No. 2/2019 provided for the employer to pay a penalty for each day the employer was in arrears of its payment obligations. Under Article 19(4) of DIFC Law No. 2/2019 the penalty was waived in respect of any period in which a dispute was pending in the court regarding any amount due to the employee under Article 19(1) of DIFC Law No. 2/2019 or the employee’s unreasonable conduct was a material cause of the employee failing to receive the amount due from the employer.