May 06, 2024 SCT - JUDGMENTS AND ORDERS
Claim No: SCT 073/2024
THE DUBAI INTERNATIONAL FINANCIAL CENTRE COURTS
In the name of His Highness Sheikh Mohammed Bin Rashid Al Maktoum, Ruler of Dubai
IN THE SMALL CLAIMS TRIBUNAL
BEFORE H.E. JUSTICE MAHA AL MHEIRI
BETWEEN
NEVILLE
Claimant
and
NORWOOD
Defendant
Hearing : | 4 April 2024 |
---|---|
Judgment : | 6 May 2024 |
JUDGMENT OF H.E. JUSTICE MAHA AL MHEIRI
UPON the Claimant’s claim filed on 14 February 2024
AND UPON a hearing having been held before H.E. Justice Maha Al Mheiri on 4 April 2024, with the Claimant and the Defendant’s representative in attendance
AND UPON reviewing the documents and evidence filed and recorded on the Court file
IT IS HEREBY ORDERED THAT:
1. The Defendant shall pay the Claimant the amount of AED 73,501.58 in relation to the below:
(a) Salary for the months of November 2023 to January 2024, and 12 days in February 2024;
(b) Payment in lieu of public holidays; and
(c) Payment in lieu of annual leave.
2. The Defendant shall pay the Claimant the DIFC Courts’ filing fee in the amount of AED 1,467.67.
Issued by:
Hayley Norton
SCT Judge and Assistant Registrar
Date of issue: 6 May 2024
At: 10am
THE REASONS
The Parties
1. The Claimant is Neville (the “Claimant”), an individual filing a claim against the Defendant regarding his employment at the Defendant company.
2. The Defendant is Norwood (the “Defendant”), a company registered in the DIFC, Dubai, UAE.
Background and the Preceding History
3. The underlying dispute arises out of the employment of the Claimant by the Defendant pursuant to an offer letter dated 29 October 2023 (the “Employment Contract”). Pursuant to the Employment Contract, the Claimant was employed in the position of an Operation Manager, with a monthly salary of AED 20,000, consisting of the following:
(a) Basic salary in the sum of AED 10,000; and
(b) Accommodation and transportation allowance in the sum of AED 10,000.
4. On 14 February 2024, the Claimant filed a claim with the DIFC Courts’ Small Claims Tribunal (the “SCT”) seeking the following reliefs in the amount of AED 73,333.34:
(a) Partial payment of salary for November 2023, and full salary for December 2023 and January 2024, and 12 days in February 2024 in the amount of AED 62,000;
(b) Payment in lieu of 13 days’ annual leave in the amount of AED 8,666.67; and
(c) Payment for 4 public holidays in the amount of AED 2,666.67.
5. On 26 March 2024, the parties attended a consultation before SCT Judge Delvin Sumo, however, they were unable to reach a settlement.
6. In line with the rules and procedures of the SCT, this matter was referred to me for determination, pursuant to a hearing held on 2 April 2024 (the “Hearing”).
Discussion
7. This dispute is governed by the Employment Law Amendment Law DIFC Law No. 4 of 2021 (the “DIFC Employment Law”) in conjunction with the Employment Contract.
Outstanding salary
8. The Claimant claims that he is entitled to salaries from November 2023 to February 2024 in the sum of AED 62,000.
9. The Defendant failed to provide any evidence to support the Claimant’s salary slips from 2023 and 2024.
10. Article 16(c) of the DIFC Employment Law states the following:
“Payroll Records
(1) An Employer shall keep record of the following information:
(c) the employee’s remuneration (gross and net, where applicable), and the applicable pay period;”
11. I will rely on the Claimant’s submissions in relation to the pending salary amounts, from November 2023 to February 2024. I am of the view that the Claimant is entitled to receive his salary payments for partial payment for the month of November 2023, full payment for December 2023 to January 2024, and the 12 days in February 2024, as requested in his Claim Form in the amount of AED 62,000.
12. The Claimant’s claim in respect of outstanding salary shall be paid the amount of AED 62,000.
Payment in lieu of untaken annual leave
13. The Claimant claims an amount of AED 8,666.67 which reflects the amount accrued against his 13 days of untaken annual leave for 2023 and 2024. The Claimant submits that he has not taken any annual leave during his employment period. The Claimant therefore claims payment in lieu of his 13 days of his annual leave.
14. 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 claims this pursuant to Clause 2 of the Employment Contract, which reads as follows:
“30 days paid annual leave and an Air Ticket to country of citizenship every two years.”
15. The Claimant started working for the Defendant on 1 November 2023 and his last working day was 12 February 2024, which resulted in the Claimant accumulating 8.46 days prorated until his last day.
- 2.5 days per month x 3 months = 7.5 days
- 12 days in February = 0.96 days
16. Article 16(1)(f) of the DIFC Employment Law imposes an obligation on an employer to maintain such a record of such days and states as follows:
“An Employer shall keep records of the following information:
(a) the dates of the Public Holidays taken by the Employee and the Daily Wages paid by the Employer in respect thereof;”
17. The Defendant failed to provide any evidence to support the Claimant’s attendance log and annual leave taken. As such, I find that the Claimant shall be paid the amount of AED 7,000 for his annual leave (AED 20,000 x 12 months/260 = AED 923.08 per day x 8.46 = 7,809.26).
Public holiday
18. The Claimant submits that he is entitled to the sum of AED 2,666.67 for the public holidays that he worked at the Defendant’s restaurant which amounts to 4 days.
19. The Defendant rejects this claim on the basis that the Claimant is not entitled to 4 days because he did not complete 1 year of work.
Article 32(2) of the DIFC Employment Law reads as follows:
“An Employer shall pay an Employee their Daily wage for each Public Holiday”.
20. Article 16(1)(f) of the DIFC Employment Law imposes an obligation on an employer to maintain such a record of such days and states as follows:
“An Employer shall keep records of the following information:
(b) the dates of the Public Holidays taken by the Employee and the Daily Wages paid by the Employer in respect thereof;”
21. The Defendant failed to provide the records of the public holidays worked by Claimant. Due to the lack of evidence submitted by the Defendant, I shall rely on the Claimant’s calculation for the number of days that he has worked.
22. The Claimant is entitled to 4 days for the days he worked on public holidays in the amount of AED 3,692.32 (AED 20,000 x 12 months/260 = AED 923.08 per day x 4 days)
23. Therefore, I shall grant the Claimant’s claim in respect of the 4 public holidays in the amount of 3,692.32.
Conclusion
24. In light of the aforementioned, I find that the Defendant shall pay the Claimant the sum of AED 73,501.58 in relation to the below:
(a) Salary for the months of November 2023 to January 2024, and 12 days in February 2024;
(b) Payment in lieu of public holidays; and
(c) Payment in lieu of annual leave.
25. 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 1,467.67 for the Court fee.