Sacked employee wins Dh21,797 compensation from hotel: Dubai Court 

Dubai Court of Cassation issued a verdict in favour of an ex-hotel worker by asking the hotel to pay him Dh21,797 as reimbursement after he was terminated from work.

The court, in its ruling, stressed that the compensation amount includes Dh4,800 as ‘food’ allowance for one year, pursuant to the employment contract that stipulates the right of the employee to receive ‘food’ allowance in cash or kind.

He claimed that he had joined work at the hotel on a basic monthly salary Dh1,500, in addition to ‘food’ allowance of Dh400 per month, but he was surprised when he was terminated after about a year.

The court based its verdict on Article 113 of Civil Transactions Act No. 5 of 1987.The court explained that it was clear according to the documents that the hotel was obliged to pay ‘food’ allowance’ under the employment contract signed between them. Thus, the hotel owner is committed to pay the worker in cash or kind.The court added that in cases where there are no documents to prove that the hotel owner has not paid the allowance in cash or kind, then in such cases the hotels are obliged to pay in cash if they cannot do it in kind.