Firm to pay ex-staff Dh70,000 for ‘unfair dismissal’: Dubai Court

Dubai Court of Cassation ruled in favour of an executive director of a tourism company, awarding him Dh70,423 including salary, end-of-service gratuity and compensation for unfair dismissal.The court dismissed appeal by the tourism company, which claimed that the executive director’s term expired during his probationary period (of six months) and, therefore, he does not deserve to be paid allowances.

The court based its judgement on Article 37 of Labour Law No. 8 of 1980, which states that if the employee has two jobs [services] with the same employer, then both the jobs should be counted as one [starting on the day of appointment] and within the probationary period.The court also emphasized that the employer extending the probationary period to more than the legally allowed six months is void.The court ruled that the employer must calculate the probationary period within the period of service when calculating entitlements of employees.

The executive director of company had filed a lawsuit against the tourism company he worked for seeking Dh227,000 for his eight months’ service.He claimed that he had joined the firm in the position of executive director with a salary of Dh17,000, plus 15 per cent on profits of car and health insurance.However, he said, that he was surprised to learn that the company dismissed him after about eight months.

The Court of First Instance ruled that the company pay him Dh68,000. But both the parties refused to accept the judgment and moved the Court of Appeal.The Court of Appeal amended the amount and ordered the company to pay the plaintiff Dh70,000.The company refused to accept the ruling and appealed to the Court of Cassation.

The court said that it is not allowed to extend the probationary period to more than what is established by law and that any action which violates labour law is void, unless it is more beneficial to the employee.