March 09, 2023 SCT - JUDGMENTS AND ORDERS
Claim No: SCT 414/2022
THE DUBAI INTERNATIONAL FINANCIAL CENTRE COURTS
In the name of His Highness Sheikh Mohammad Bin Rashid Al Maktoum, Ruler of Dubai
IN THE SMALL CLAIMS TRIBUNAL
BEFORE H.E. JUSTICE MAHA AL MHEIRI
BETWEEN
MIRUYA
Claimant
and
MAHUB
Defendant
Hearing : | 27 February 2023 |
---|---|
Judgment : | 9 March 2023 |
JUDGMENT OF H.E. JUSTICE MAHA AL MHEIRI
UPON the Claim Form being filed on 15 November 2022
AND UPON a Second Hearing being held before H.E. Justice Maha Al Mheiri on 27 February 2023, with the Claimant in attendance and the Defendant’s representative failing to attend
AND UPON reading the submissions and evidence filed and recorded on the Court file
AND PURSUANT TO Rule 53.61 of the Rules of the DIFC Courts the (“RDC”)
IT IS HEREBY ORDERED THAT:
1. The Defendant shall pay the Claimant the amount of AED 31,534.94.
2. The Defendant shall pay the Claimant the Court fee in the amount of AED 630.70.
Issued by:
Hayley Norton
SCT Judge and Assistant Registrar
Date of issue: 9 March 2023
At: 2pm
THE REASONS
Parties
1. The Claimant is Miruya (the “Claimant”), an individual filing a claim against the Defendant regarding his employment at the Defendant company.
2. The Defendant is Mahub (the “Defendant”), a company registered in the DIFC located at DIFC, Dubai.
Background and Hearing
3. The underlying dispute arises over the employment of the Claimant by the Defendant pursuant to an offer letter dated 7 April 2020 (the “Employment Contract”). The Claimant was hired in the position of ‘Driver’ with a monthly salary of AED 3,000, consisting of the following:
(a) Basic salary in the sum of AED 2,000; and
(b) Accommodation and transportation allowance in the sum of AED 1,000.
4. The Claimant was not paid his full salary starting from his first month working with the Defendant. The Claimant constantly reminded the Defendant for payment of his salary, but the Defendant would only pay him partial sums each month.
5. On 7 September 2022, the Claimant went on annual leave until 24 September 2022. On 25 September 2022, he reported back to work but was told by the Defendant to leave the restaurant and they would contact him for a new position. After a week, the Claimant contacted the Defendant and was offered the position of ‘cleaner’ at the restaurant. The Claimant declined the offer as he suffered from an injury that made it hard to perform that particular role.
6. Thereafter, it appears that the Claimant was neither terminated nor did he resign. The Claimant’s last day working with the Defendant was on 24 September 2022.
7. On 15 November 2022, the Claimant filed a claim in the DIFC Courts’ Small Claims Tribunal (the “SCT”) claiming various sums, set out as follows:
(a) Salary payment in the amount of AED 18,450;
(b) Payment for 3 years of untaken public holidays in the amount of AED 3,500;
(c) Payment in lieu of annual leave for 2021 to 2022 in the amount of AED 6,000; and
(d) Flight ticket to the Claimant’s home country in the amount AED 1,050.
8. The Defendant failed to file an acknowledgment of service or file a defense to the claim. On 27 January 2023, the Defendant filed a written statement with the Court submitting that the Claimant stopped working for over a year and did not give any notice to the Defendant. The Defendant did not support this argument with any evidence, as such the Court will not take into consideration this argument.
9. The parties met for a Consultation with SCT Judge Maitha AlShehhi on 15 February 2023 but were unable to reach a settlement.
10. In line with the rules and procedures of the SCT, this matter was referred to me for determination, pursuant to a Second Hearing held on 27 February 2023 with the Claimant in attendance and the Defendant’s representative absent although served with notice.
11. RDC 53.61 of the Rules of the DIFC Courts stipulates that “if a defendant does not attend the hearing and the claimant does attend the hearing, the SCT may decide the claim on basis of the evidence of the Claimant only”.
Discussion
12. This dispute is governed by the DIFC Law No. 4 of 2021 (Employment Law Amendment Law) (hereafter the “DIFC Employment Law”) in conjunction with the relevant Employment Contract.
13. Before dealing with the Claimant’s claims, the Court will first deal with the Claimant’s last working day to establish the Claimant’s entitlements. For the matters that the Claimant failed to provide evidence to support his claim the Court shall determine the matter on the basis of the DIFC Employment Law and the Employment Contract.
14. At the hearing, the Claimant confirmed that he returned from his annual leave on 24 September 2022, and was informed by the Defendant to leave the premises on the basis that he will be contacted about his new position. The Claimant did not resume back to his position as a driver for the Defendant again. As such, I shall treat the Claimant’s last working day with the Defendant to be 24 September 2022.
Outstanding salary
15. The Claimant is seeking payment for his outstanding salary in the sum of AED 18,450 from the time he started working in April 2020 until his last working day being 24 September 2022. The Claimant submits that he was not paid his full salary for some months and other months he was not paid at all. The Claimant provided a table to show the months that he has not been paid.
MONTHS | Received | Pending |
April 2020 | 0 | 2300 |
May 2020 | 0 | 3000 |
June 2020 | 0 | 3000 |
July 2020 | 3000 | 0 |
August 2020 | 0 | 3000 |
September 2020 | 0 | 3000 |
October 2020 | 0 | 3000 |
November 2020 | 0 | 3000 |
December 2020 | 2150 | 850 |
January 2021 | 2500 | 500 |
February 2021 | 0 | 3000 |
March 2021 | 2000 | 1000 |
April 2021 | 2000 | 1000 |
May 2021 | 3000 | 0 |
December 2021 | 400 | 2600 |
16. Article 16 of the DIFC Employment Law states as follows:
“16. Payroll records
(1) An Employer shall keep records of the following information:
(a) the Employee's name, date of birth, job title, telephone number and contact address;
(b) the Employee's date of commencement of employment;
(c) the Employee's Remuneration (gross and net, where applicable), and the applicable Pay Period;
(d) the hours worked by the Employee on each day if the Employee is paid on an Hourly Rate;
(e) each deduction made from the Employee's Remuneration and the reason for it;
(f) the dates of the Public Holidays taken by the Employee and the Daily Wages paid by the Employer in respect thereof;
(g) the dates of Vacation Leave taken by the Employee and the Daily Wages paid by the Employer in respect thereof and the Vacation Leave balance owing;
(h) any Parental Leave taken by the Employee (and any pay received by the Employee during such leave, if applicable); and
(i) any Sick Leave taken by the Employee and Sick Pay paid to the Employee.
(2) The records referred to in Article 16(1):
(a) shall be in English and the English language shall have precedence over any other language used in the records;
(b) shall be kept, or be electronically accessible at or from, the Employer's principal place of business in the DIFC;
(c) shall be retained by the Employer during the Employee's employment and until six (6) years after an Employee's Termination Date; and
(d) may be retained in electronic format.”
17. Due to the Defendant’s failure to submit any evidence to prove that full salary payments were made to the Claimant, the Court shall accept the Claimant’s submissions and order that the Defendant shall pay the Claimant the amount of AED 18,450.
Payment in lieu of unpaid annual leave
18. The Claimant claims an amount of AED 6,000 as the amount accrued against his unpaid annual leave. The Claimant submits that he did go on vacation availing his annual leave but the days he went on annual leave were unpaid. The Claimant claims this pursuant to Clause 2 of the Employment Contract, which reads as follows:
“2. 30 days paid annual leave and Air Ticket to country of citizenship every Two years…”
19. The Claimant submits that he is entitled to be paid for 30 days’ leave per year, for the years 2021 and 2022. The Claimant therefore claims payment of 60 days of annual leave to be paid to him by the Defendant.
20. Article 27 of the DIFC Employment Law states as follows:
“Vacation Leave
(1) Subject to Article 30, an Employee who has been employed for at least ninety (90) days is entitled to paid Vacation Leave of twenty (20) Work Days in each Vacation Leave Year.
(2) An Employee is entitled to be paid their Daily Wage during Vacation Leave.
(3) An Employee is entitled to carry forward accrued but untaken Vacation Leave into the next Vacation Leave Year for a maximum period of twelve (12) months after which any unused Vacation Leave shall expire. The amount of accrued but untaken Vacation Leave to be carried forward may be agreed between the Employer and Employee, provided that nothing shall preclude an Employee from rolling over at least five (5) Work Days per Vacation Leave Year.
(4) Vacation Leave is exclusive of Public Holidays to which an Employee is entitled.
(5) Unless otherwise agreed in writing by an Employee, and subject to Article 28(1), an Employee cannot receive payment in lieu of Vacation Leave.
(6) Unless otherwise agreed by an Employer, Vacation Leave cannot be converted to Sick Leave if an Employee is sick during any period of Vacation Leave.
Compensation in lieu of Vacation Leave
(1) Where an Employee's employment is terminated, the Employer shall pay the Employee an amount in lieu of Vacation Leave accrued but not taken up to and including the Termination Date calculated in accordance with Article 28(3).
(2) In the event that the Employee has taken more Vacation Leave than has accrued at the Termination Date, the Employer shall be entitled to deduct an amount calculated in accordance with Article 28(3) from any payments due to the Employee on the Termination Date.
(3) Compensation in lieu of Vacation Leave, or any amount owed by the Employee in respect of excess Vacation Leave taken, shall be calculated using the Employee's Daily Wage at the Termination Date.”
21. I do not agree with the Claimant’s calculation for annual leave, as I find that the Claimant did not complete 12 months of working in 2022, thus enabling him to avail the 30 days’ annual leave per annum. The accrual of annual leave is carried out gradually throughout the year, and upon the resignation or termination of an employment relationship, any amounts owed would be pro-rated against the amount of time passed during the course of that year. The Claimant’s last working day was 24 September 2022, which resulted in the Claimant accumulating 21.92 days pro-rated until his notice period.
30 days per annum/12 months = 2.5 x 8 months and 24 days = 21.92 days
22. The Defendant has not provided any evidence to oppose the Claimant’s Claim. As such, the Claimant is entitled to payment in lieu of 30 days’ annual leave for the years 2021 and 21.92 days in 2022. As such, I find that the Claimant shall be paid the amount of AED 7,188.84 (3,000 x 12 /260 = AED 138.46 x 51.92 days = AED 7,188.84).
23. As such, I order that the Defendant shall pay the Claimant the Amount of AED 7,188.84.
Flight Allowance
24. The DIFC Employment Law is silent on an employee’s entitlement to an airfare in the form of an allowance. Such a benefit is common in employment relationships, and the general practice in this Court is to proceed with what is agreed upon by the parties in the Employment Contract they have entered into.
Clause 2 of the Employment Contract stipulates as follows:
““2. 30 days paid annual leave and Air Ticket to country of citizenship every Two years…”
25. In light of this, I find that the Claimant is entitled to his airfare for an economy flight ticket to Pakistan in the amount of AED 1,050.
Payment in Lieu of Public Holidays
26. The Claimant argues that he is entitled to payment in lieu of 35 days of public holidays that he worked in the years 2020 to 2022, until his last working day, in the sum of AED 3,500. The Claimant has failed to specify which public holidays he wishes to claim payment against.
27. It is the employer’s duty to keep a record of their employees’ attendance, as well as days worked, annual leave taken, and public holidays worked. The Defendant failed to fulfil its duty towards the Claimant by keeping such a record.
Article 16(g) of the DIFC Employment Law states the following:
“Payroll Records
(1) An Employer shall keep record of the following information:
…
(f) the dates of Public Holidays taken by the Employee and the Daily wage paid by the Employer in respect thereof”
Therefore, I find that the Claimant shall be paid the amount of AED 4,846.10 as payment for the 35 public holidays worked (3,000 x 12 /260 = AED 138.46 x 35 = AED 4,846.1).
Conclusion
28. In light of the aforementioned, I find that the Defendant shall pay the Claimant the sum of AED 31,534.94.
29. I am of the view that, as the Claimant has been successful in his claims, he is entitled to recover the court fee applicable to the filing of this case. The Defendant shall therefore pay to the Claimant the amount of AED 630.70 for the Court fee.