I worked for more than five years as sales manager. 80% of the company business comes through me only. The employment contract included monthly salary as well as 5% of the net profits. Presently, I have submitted my resignation and upon calculating my dues my company informed me that as per the labour law and labour ministry as well I do not have the right to combine between end-of-service gratuity and profits, the profits are only for the company partners and according to them, the only choice for me is to accept the end-of service gratuity only with three month salary as a compensation. Otherwise I have the right to go to ministry of labour for complaint as per my company manager. My question here is that true and is it as per the labour law? Please advise.
I would like to clarify to the questioner that he is entitled to end-of-service gratuity in full as per the Labour Law in addition to 5% of the profits as well. Therefore, I advise the questioner that if he failed to reach an amicable solution with the company, he shall file complaint before the Ministry of Labour to claim his rights in full. In the event of failure to reach solution before the Ministry of Labour, the questioner shall request the Ministry of Labour to refer the case to the competent court.
Questions answered by Advocate Mohammad Al Shaiba, of Al Shaiba Advocates and Legal Consultants