June 06, 2024 SCT - JUDGMENTS AND ORDERS
Claim No: SCT 169/2024
THE DUBAI INTERNATIONAL FINANCIAL CENTRE COURTS
IN THE SMALL CLAIMS TRIBUNAL OF DIFC COURTS
BETWEEN
NIGEL
Claimant
and
NIKHIL
Defendant
ORDER WITH REASONS OF H.E. JUSTICE NASSIR AL NASSER
UPON the Defendant’s Acknowledgment of Service dated 20 May 2024 setting out its intention to contest the jurisdiction of the DIFC Courts (the “Defendant’s Jurisdictional Challenge”)
AND UPON this Claim having been called for a Jurisdiction Hearing before H.E. Justice Nassir Al Nasser on 4 June 2024, with the Claimant and the Defendant’s representative in attendance
IT IS HEREBY ORDERED THAT:
1. The Defendant’s Jurisdictional Challenge is dismissed.
2. The DIFC Courts has the jurisdiction to hear and determine this Claim.
3. Each party shall bear his own costs.
Issued by:
Hayley Norton
SCT Judge and Assistant Registrar
Date: 6 June 2024
At: 1pm
SCHEDULE OF REASONS
1. The Claimant is Nigel (the “Claimant”), an individual filing a claim against the Defendant regarding his employment at the Defendant’s company.
2. The Defendant is Nikhil (the “Defendant”), a company registered and located in DIFC, Dubai, UAE.
3. On 30 April 2024, the Claimant filed a claim in the DIFC Courts Small Claims Tribunal (the “SCT”) seeking various employment matters in the sum of AED 489,078.11.
4. On 20 May 2024, the Defendant filed its Acknowledgment of Service contesting the jurisdiction of the DIFC Courts.
5. A jurisdiction hearing was duly listed before me on 4 June 2024 at which the Claimant and the Defendant’s representative appeared.
6. By way of background, the Claimant filed a claim in the SCT claiming various employment claims under the DIFC Employment Law in the sum of AED 489,078.11.
7. The Defendant is challenging the jurisdiction of the DIFC Courts on the grounds that the Employment Contract refers to UAE Law and not the DIFC Employment Law.
8. The Claimant submits that he was an employee of the Defendant and was issued a DIFC employment visa from the period 31 August 2020 to 30 August 2023, and then later renewed from the period 11 July 2023 to 10 July 2025. Therefore, the Claimant submits that he was an employee of the Defendant in the DIFC.
9. The Claimant adds that his employer was contributing to the DEWS Scheme every month. In addition, the Claimant provided the Court with evidence of a DIFC employment card.
10. Although the Defendant submits that the Employment Agreement is governed by UAE Law, such Law does not apply in the DIFC.
11. The jurisdiction of the DIFC Courts is determined by Article 5(A) of the Judicial Authority Law, Dubai Law No. 12 of 2004, as amended (the “JAL”), which provides a number of limited gateways through which the DIFC Courts have jurisdiction over a claim, which are, as relevant:
“(a) Civil or commercial claims and actions to which the DIFC or any DIFC Body, DIFC Establishment or Licensed DIFC Establishment is a party;
(b) Civil or commercial claims and actions arising out of or relating to a contract or promised contract, whether partly or wholly concluded, finalised or performed within DIFC or will be performed or is supposed to be performed within DIFC pursuant to express or implied terms stipulated in the contract;
(c) Civil or commercial claims and actions arising out of or relating to any incident or transaction which has been wholly or partly performed within DIFC and is related to DIFC activities; . . .
(e) Any claim or action over which the Courts have jurisdiction in accordance with DIFC Laws and DIFC Regulations. . .
. . . civil or commercial claims or actions where the parties agree in writing to file such claim or action with [the DIFC Courts] whether before or after the dispute arises, provided that such agreement is made pursuant to specific, clear and express provisions.”
12. In accordance with Article 5(A) of JAL, I find that the DIFC Courts have the jurisdiction to hear and determine this claim as the Defendant is a DIFC entity and the Claimant is an employee of that entity.
13. In addition, I find that the law governing the Employment Contract shall be the DIFC Employment Law and not the UAE Labour Law.
