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Is a manager liable for company’s debt?

Man denied salary as loan taken by one of the partners leads to financial trouble

Gulf News

I have been working as a manager and partner in a company in Dubai for six years. For more than four months I have not received my salary and other allowances as a manager in the company, and for more than one year I have also not received my bonus. This is because one of the partners last year requested a loan of a huge sum from the company, which he was supposed to return within three months; but he still hasn’t. As per the memorandum of association I am entitled to a monthly salary plus a commission. Recently, there was a dispute between me and the partner who took the loan on the issue of my salary. The company did not make any profit and might close any time due to the loan taken, but the partner says that he does not have money to return back to the company. I don’t want to take responsibility, therefore I have submitted my resignation as manager. Am I entitled to file a complaint before the Ministry of Human Resources and Emiratisation to claim my pending salary? What is the procedure to withdraw legally from the company as a partner? Will my resignation as manager absolve me of any future responsibility? In case the company closes down due to the current financial problem, do we have the right to file a case against the partner who took the loan?

The questioner cannot approach the ministry, or labour court, to claim his salary as a manager and partner as his residence visa is related to the Department of Naturalisation and Residence and the ministry or courts have no jurisdiction with regard to the dues of partners. The questioner should refer to the memorandum of association of the company, especially the clause related to the manager’s responsibility and the way of the withdrawal as manager from the company, and the withdrawal as the partner and how to dissolve the company. Therefore, the questioner may call the partners for a meeting to settle the matter amicably or go to the competent court in case of failure of this. Finally, the questioner and the other partner have the right to file a case about the concern in court against the partner who took the loan and caused damage to, and loss for the company.

Leave days

I have been working in a company for more than four years. In October 2016, I was supposed to go for annual leave but my company did not allow me to do so and told me I may take the leave next year. How do I calculate my leave dues as per the Labour Law in case I work and delay again this year’s annual leave? Am I entitled to take a full double salary if my company will not allow me take my 2017 leave as well? How many times does the employer as per the UAE Labour Law have the right to delay an employee’s annual leave?

Article 78 of the UAE Labour Law states the following: “Every worker shall be entitled to his basic wage and the housing allowance if applicable in respect of his days of annual leave where the circumstances of the work make it necessary for a worker to work during all or part of his annual leave and days of leave on which he works are not carried forward to the following year, the employer shall pay him his remuneration, plus a leave allowance in respect of the days worked at a rate equal to his basic wage”. It shall be unlawful in any circumstances to employ a worker during his annual leave more than once in two successive years.

Questions answered by advocate Mohammad Ebrahim Al Shaiba of Al Shaiba Advocates and Legal Consultants.

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