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UAE

Ask the Law

Ask the law: Legal recourse after end-of-service benefit cheque bounces

Ex-employee seeks guidance on the proper steps to claim rights from employer



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Question:

Two months ago, I submitted my resignation from work and received my end-of-service benefits through a cheque. The cheque was returned by the bank due to the account being closed. My question is: What is the appropriate measure to take against the employer to claim my rights? Do I have the legal right to file a new complaint before the Ministry of Labour?

Answer:

To answer such question, I would advise the questioner that:

As a general rule, the cheque that bounces without being cashed from the drawee bank is considered an executive document pursuant to Article 667 of the Commercial Transactions Law no. 50 of 2022, which states that (“The cheque on which the drawee states that it has no or insufficient balance shall be an executive instrument. The bearer of cheque may request the execution thereof, in whole or in part, by force. The provisions, procedures and rules set out in the Civil Procedures Law shall apply to the application for execution and contention therein.”)

The Authority for the Unification of Federal and Local Judicial Principles decided on 21/12/2023 by majority rule, in Request No. (1) of 2023 submitted by the Attorney General of the Federation, to unify the legal principle, considering that the phrase “closing the account” is equivalent to the phrases “has no or insufficient balance” stipulated in Article 667 of the Federal Decree Law no. 50 of 2022 regarding the issuance of the Commercial Transactions Law.

As a result, you have the right to file a direct execution case in front of the court to recover the amount of the cheque.

With regard to filing a new complaint, if you have signed a previous settlement before the Labour Office that resulted in the cheque you currently have, this means that you have signed a clause in the settlement stating that you have waived your rights, which means that you are not entitled to file a new complaint before the Labour Office.

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