Employee with company debt resigns in UAE, goes to court with gratuity claims
A look at whether the employer can stop his claims until the debt is repaid
Question: I am an employer. Two months ago, I filed a civil lawsuit against my employee to return a loan with other amounts he took from the company. The lawsuit has not ended yet, but now this employee has submitted his resignation from work and filed a labour lawsuit to claim his rights at the end of service.
What is the appropriate procedure to take to stop his claims until I obtain my rights from him?
Answer: According to Article 103 of the Federal Decree-Law No. (42) Of 2022 Promulgating the Civil Procedure Code, the legal proceedings may be suspended if the parties agree not to proceed with the same for not more than six months from the date of the court’s endorsement of their agreement.
Such suspension shall have no legal effect on any mandatory date which the law has prescribed for a certain action to occur, and neither litigant may request resumption of the legal proceedings within the suspension period without the consent of the other party.
In the event that neither party requests resumption of the legal proceedings within eight days following the expiry of the suspension period, the plaintiff shall be deemed to have abandoned the case, and the appellant shall be deemed to have abandoned the appeal.
Moreover, the court, according to Article 104 of the above law, shall order suspension of a legal proceedings if it is convinced that the decision on its merits would be contingent upon the determination of any other issue, and that once such reason for suspension ceases to exist, either litigant may apply for resumption of the case.
So as a principle, there is no way to stop his labour case since each subject is different from the other and there is no reason stipulated by law. But you may request the suspension on the bases mentioned in Article 104 since the decision on one case would be contingent upon the determination of any other issue and leave the matter to the court to decide.