Salary overdue for more than one year cannot be claimed as per UAE Federal Labour Law

I worked in a company for more than three years. Almost one month ago, I submitted my resignation from work upon obtaining a better job; I worked for the company for salary and commission basis. I had not received my salary for more than a year. I used to receive my commission and company told me that I would be paid in full at the end of my limited contract, which has expired. I asked company for my end of service gratuity which includes my commission, tickets, leave arrears and overdue salary for almost 13 months. At present company is delaying the settlement of my rights. I turned to the Ministry of Labour where the legal researcher told me that as per the law I may not demand the company to pay the overdue salary which are from more than one year back, however the other rights may be claimed especially since the company is currently the said salary. Is there an article in the labour law entitling the employer not to pay salary over dues for more than one year although the employer was delaying the payment of such salary and used to promise every time, witnessed by my colleagues, that he would pay the said salary once the companies condition improves and, finally, he promised to settle this matter upon the expiry of the contract. Can I use my colleagues in the company to testify before the competent court for obtaining my overdue salary? Please advice and guide me so that I can get my overdue salary along with my labour rights.

Article 6 of the Federal Labour Law No8 of 1980,which states that no claim for any of the rights provided for in this law shall be heard if brought to court after the lapse of one year from the date of accrual. There for, the questioner may not claim for the overdue salary from more than one year ago. However the questioner may claim the remaining right stated by the questioner pertaining to the end-of service gratuity on the basis that it becomes due sa soon as the contract expires.

Answer By Advocate Mohammad Ebrahim Al Shaiba

Article 6 of the Federal Labour Law No8 of 1980

Without prejudice to the provisions concerning the collective labour disputes, stipulated hereunder, if the employer, worker or any beneficiary thereof lodges claim concerning any of the rights occurring to any of them under this law, he is required to apply to the concerned Labour Department, and the latter shall call both parties and will take whatever is considered necessary for settlement of dispute between them amicably. But if amicable settlement has not been reached, the said department must refer the dispute to the competent Court within a fortnight from the date of application being submitted to it. The case so referred should be accompanied with a memo giving a summary of the dispute, evidence of both parties and the comments of the Department.

Within three days from date of receipt of the application the Court will fix a hearing for the case, and a summon to this effect will be served upon both parties of the dispute. The Court may request a representative to appear for the Department of Labour to explain the contents of the memo submitted by it.

In all cases no claim for any rights due according to the provisions of this Law will be heard after lapse of one year from date of its maturity, neither will the action be heard if the procedures provided for in this Article have not been complied with.

Bread to be sold by weight from October in UAE - Each KG to cost Dh2.50

Bread will be sold by kilogramme and not loaf across the country starting from October.Under the revised standardisation, bread will be sold Dh2.50 per kilogramme, significantly lower than current prices, reported Gulf News.Currently, bread is sold by loaf with prices starting from Dh2.

The newspaper quoted Dr Hashim Al Nuaimi, Director of the Consumer Protection Department at the Ministry of Economy as saying a team will rigorously monitor quality and prices of bread sold in the country.

The department has already informed all bakeries about the move. Bakeries will have to adhere to new specifications in moisture, dough and weight, he said.

Some bakers add more water to the dough so that bread gain weight although it reduces shelf-life.The new strandards, he said, is being implemented to ensure consumers get good quality bread at affordable prices.

Dubai UPS Cargo Plane Crash Video

UAE prepares laws to boost investment

Our laws are quite old and should be revised to cope with the current economic situation and to stand up to the market challenges, UAE Minister of Economy says

Dubai: The Ministry of Economy is putting the final touches to 12 new laws, which are part of a plan to modernise the legislative system and enhance the UAE business environment, in line with the UAE strategic vision for 2021.

During an event held by Dubai Chamber of Commerce and Industry, the Minister of Economy Sultan Bin Saeed Al Mansouri said: "Our laws are quite old and should be revised to cope with the current economic situation and to stand up to the market challenges, according to the fundamentals of justice."

He said the new laws seek to address concerns about commercial regulations and arbitration and to promote efficiency, transparency, and investor confidence in the business sector.

The Competition Law, new Companies Law, Auditors Law, Arbitration Law, Foreign Investment Law, Industry Law, Industrial Ownership, the International Intellectual Property Rights Organisation, Certificate of Origin Law and Anti-Fraud Law are some of the laws that have been drafted to strength the country’s legal infrastructure and boost the economy.

Various other ministries have also been involved in this process, for which the Ministry of Economy is responsible.

The minister added that, despite the fact that the economy has recently seen some challenging times, it appears to be on the road to recovery.

"The UAE has enough reasons to be confident. The trade and economic statistics show that the macro-economic fundamentals remain strong, although there's cautious optimism among the private sector," he said. "The liquidity situation has improved and we expect slow recovery in the next two to three years.

New bad cheque court urges changes in the law

A new Dubai court has been set up to specifically handle cases relating to bad cheques and has led to calls for a change in the law relating to bounced cheques, it was reported on Sunday.

Judge Ahmed Saif, chief justice of the Dubai Criminal Courts, said around 100 bad cheque cases are heard before the weekly court, The National newspaper reported.

It is a criminal offense to bounce a cheque in the UAE, but the increase in cases relating to this has led to calls within the legal community for a review of the law and how the cases are heard.

“People have to sign blank cheques to rent, borrow, purchase and do business in Dubai. If conditions make it the only method of [doing] business, the courts must not criminalise non-payment,” criminal lawyer Harun Tahlak is quoted as saying in the report.

“Article 401 of the UAE penal code needs to be changed or dropped. [It] states that one who defaults on a cheque with criminal intention can be jailed or fined. But the courts routinely sentence people to jail,” he added.

Fellow lawyer Ali Musabah from PanGlobe Advocates and Legal Consultants argued that the courts rarely issue fines for cheque cases and that jail time should only be for repeat offenders.

“I believe the courts should issue fines for first-time offenders [owing] small amounts. If a person was unable to repay his credit card or bank loan for good reason, he should be fined not jailed,” he told The National.