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UAE

Ask the Law

Ask the law: I quit my job after my salary was cut

My commissions were not given for more than a year



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Question:

I have been working in a private company for 5 years, and a month ago I submitted my resignation from work due to a salary cut and not receiving the commissions for more than a year. The employer told me that, according to the new labour law, I do not have the right to claim commissions that have passed for more than a year.

Is this correct and in accordance with the law? Do I have the right to claim compensation on the grounds that my resignation from work was because of my salary reduction and non-payment of commission? Please advise.

Answer:

I would advise the following:

Labour claims have a short limitation period of only a year. This is stated in Article 54 of the Federal Decree Law 33 of 2021: ("A lawsuit related to any of the rights accrued under the provisions of this Decree-Law shall become time-barred after the lapse of one (1) year from the date of entitlement to the right that is the subject matter of the lawsuit").

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The Labour Law's Article 47 specifies only two reasons for the unlawful termination of the worker’s service by the employer and resignation is not one of them, if the termination of the worker’s service is due to filing a serious complaint to the Ministry or filing a lawsuit against the employer, whose validity is proven. The employer shall pay fair compensation to the worker estimated by the competent court if it is proven that the termination is unlawful according to Clause (1) of this Article.

"The amount of compensation shall be defined by taking into account the work type and the amount of damage caused to the worker and his service term. In all cases, it is required that the amount of compensation does not exceed the worker’s wage for a period of (3) three months, calculated according to the last wage he was obtaining. The provisions of Clause (2) of this Article shall not prejudice the right of the worker to obtain a notice period allowance and end of service benefits payable to him, in accordance with the provisions hereof."

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However, you may request compensation due to salary deduction and nor receiving the commissions, leaving it to the court to decide on whether or not your situation is related to one of the reasons mentioned in the Article above.

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