UAE Labour Law Update September 2016

04 Sep 2016

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James Berry & Associates Employment Department E-Bulletin

September 2016

Case Law Update 

Pierre-Eric Daniel Bernard Lys vs ELESCO LIMITED

DIFC Court of First Instance

14 July 2016

In the judgment the Claimant was entitled to payment of his unpaid salary, bonus and end of service gratuity. It was the Claimant’s case that the reasons given by the Defendant did not constitute ‘cause’ as defined by Article 59(A) of the DIFC Employment Law and therefore, that he should be entitled to remedies. The judgment awarded payment of unpaid salary; payment in lieu of notice period and vacation leave; reimbursement of business expenses, school fees and accommodation; payment of bonus and service gratuity; costs and interest.    

Legislation and Practice 

In the first half of 2016, there has been an increase in the number and total value of cases in the DIFC Court.  This indicates an increasing confidence for businesses in the DIFC Courts and the figures show that between January and June 2016, the total value of Court of First Instance (CFI) cases, was approximately AED 3.44 billion. This compares with AED 2.33 billion in the same period of last year, a 48 percent year-on-year increase.

What we have been up to in August:

• Advising on termination of senior executive

• Negotiation of complex Settlement Agreement

• Preparing for DIFC matter hearing;

• Advising client on their UAE Labour Law entitlements, upon the early termination of a fixed term contract;

• Advising corporate client on the disciplinary process under the UAE Labour Law;

• Advising client about the status of restrictive covenants in the UAE;

Employment Department (employment@jamesberrylaw.ae)