Employer successfully claims back advance commission and other employment law updates

10 Jul 2017

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Employer successfully claims back advance commission and other employment law updates

Case Law Update 

DIFC Small Claims Tribunal – Harish v Haukea Ltd

The judgement awarded the Defendant the sum AED 116,774.19 towards advance commission paid to the Claimant, less AED 19,850 owed to the Claimant as Gratuity and vacation leave based on the Employer’s counterclaim.

The Company successfully establish that with regards to the advance commission payment (AED 120,000) the Claimant failed to earn any commission during his time in employment is therefore contractually obliged to repay the entire amount, pursuant to the Employment Agreement.   What also assisted the Company was that they were able to show that the Claimant breached his Employment Contract and Post termination covenants more than once. 

Legislation and Practice

The Human Resources and Emiratisation Ministry (MOHRE) has reduced the administrative fines for delayed submission of the employment contract and work permit renewal applications. The maximum amount of fines for these violations has been capped at 2,000 AED per employee and the rate for the fines has been reduced from AED500 to AED100.

On Monday 5 June 2017, the Kingdom of Saudi Arabia, the United Arab Emirates, Bahrain and Egypt have called off diplomatic relations with Qatar, and implemented a range of related restrictions. Other states have followed suit, including Libya, Yemen, the Maldives, Mauritania, and Mauritius.  The situation is still continuing to develop and we must watch the the extent of transport restrictions.

What the Employment department of James Berry & Associates has been up to in June:

• Advising on disciplinary and investigation process on behalf of the Employer;

• Negotiating terms of complex settlement agreement on termination;

• Advising on transfer of employees from Abu Dhabi to Dubai;

• Dealing with overtime payment complaint from employees based on their status in the Company.

Please feel free to contact us for more information.