Why You Should Pay the Final Dues to an Employee Quickly

01 May 2017

Case Law Update 

Frontline Development Partners Limited v Asif Hakim Adil

In the DIFC, the judgment has gone against the appeal and upheld the decision of the Court of First Instance.  In brief, this confirms the correct interpretation of Article 18 of the DIFC Employment Law and Mr Adil was awarded the penalty payment in full.

The reason why this decision is significant is that Article 18 imposes strict terms on payment of final dues and any failure to make payment to an exiting employee (within 14 days of the termination date) the employer faces a daily penalty.  In this case, the failure to pay on time meant that Mr Adil could claim a penalty of USD1,643.83 per day.

Warning for employers in the DIFC is to ensure that termination payments are made within time and also calculated correctly so as to avoid such excessive penalties (which outweigh the original payment to the employee).

What we have been up to in April:

• Advising on the enforceability of restrictions in the UAE
•  Reviewing a complex Settlement Agreement dealing with both UAE and UK rights and     benefits
• Drafting a grievance in line with Company Policies
• Dealing with a serious disciplinary matter involving potential criminal action

Being one of the top law firms in Dubai, James Berry & Associates have qualified and experienced employment lawyers in Dubai, providing employment law advice to businesses and individuals for over 25 years.