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UAE Court

Our client referred to us seeking our legal support and team for recovery of the unpaid commission set out by the defendant company and claim of the annual commission of the service he provided to the company. The claimant signed the offer letter followed by an unlimited contract, precisely stating the employment benefits including a maximum annual commission based on his performance. During the time of the Pandemic that took place in 2020, as well as the traveling restrictions, the claimant was restricted to enter back into UAE; yet, he deliberately continued his service to the company. However, a year and four months after the execution of the unlimited contract, it has later come to his attention that he was terminated followed by a notice period without providing any legitimate reasons. During his service under the notice period, however, the defendant issued a waiver to the notice period and terminated him with an immediate effect.

Read More About: Disclosure of Private Work Data in the United Arab Emirates

 Occurring Challenges

We brought the claim to the Court of First Instance under Partial Labor and the court delegated an expert and upon delegation and the outcome of the report, the judge ruled that the plaintiff is obliged for compensation and the accumulated legal interest from the final date of the trial, with an exception of compensation for arbitral dismissal, including the annual employee benefits. In addition to paying upfront in full the compensation by the defendants jointly. 

The first defendant filed an appeal case based on the final judgment of the Court of First Instance UAE asserting that the provision of such compensations did not seem as reasonable as the employer was outside of the country at the time of the validity of the contract.  

 Subsequently, we firmly challenged the defendant company’s claim. The court accepted the appeal in its form that appeals were done in the right manner and timely manner however the merit said otherwise. The court rejected the claimant and the defendant’s appeal and requested all parties to pay appropriate legal fees and expenses jointly. Even though the appeal was appropriate however the grounds of the claim lacked merit. Therefore, we challenged this dispute and referred it to the Court of Cassation.

The outcome of the trial

The judge analyzed the performance of the claimant at the time of the service to which it distinguished the amount for the compensation of the commission through our client’s formal objection before the Court of Cassation. 

 Based on the pieces of evidence provided, the claimant had at the time of service under the valid and existing contract, accomplished several successful commercial deals on behalf of the company despite the traveling restriction imposed by the foreign state, and due to these justifications, the defendant is liable for recovery of the commission of the successful deals that he had closed for the defendant company. 

Hence, the courts finalized the judgment and successfully overturned the case providing compensation to the claimant concerning request payment of the commission by the defendants.

 If this success story resembles your situation, we are here to assist you with our professional legal team. 

Khairallah advocates & legal consultants is one of the most remarkable law firms in Dubai and Abu Dhabi because its services are constantly expanding to cover all legal fields there.

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