I have been working in a company as a sales manager for three years. For the last two years, the company has not allowed me to take my annual leave. I need to go to my home country for an urgent matter now but the company has again rejected my application for the annual leave. They say in company’s interest, I have to wait until next year to get my annual leave or if I insist on taking it now and go, my service will be terminated. Does the employer, as per the UAE Labour Law, have the right to delay my annual leave? How my due leaves are calculated as per the Labour Law in case I continue working and my annual leave is again delayed?
Article 78 of the UAE Labour Law states: “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 for more than once in two successive years. Finally, as per the above-mentioned article, the employer has the right to delay the employee’s annual leave all or part of it due to a company benefit.
I have been working as a manager and partner in a company for three years. For more than six months, I have not received my salary as the company’s manager and I have also not received my profit share for more than two years, whereas the other two partners had already taken their profit share for the period. Now, they say that the money which they had taken was loan and would be returned. As per the memorandum of association, I am entitled to a monthly salary plus the profit share. A dispute has arisen between me and the other two partners about the issue of my salary. Now, they say the company might have to be closed down anytime as it is not making profits. And as per my partners, I’m not entitled to get my salary as long as the company is not making profits. This is not true. The company is making profits but they are pushing me to agree to a salary reduction and forego my claim on the profit share. My questions are: 1. Am I entitled to file a complaint before the Ministry of Labour or Dubai Labour Court claiming my overdue salaries. 2. What if I want to withdraw legally from the partnership, can I do that? 3. Can my partners terminate my service as the manager from the company?
I would like to clarify to the questioner that claiming his salary as a manager of the company shall not be before the Ministry of Labour or labour courts as the questioner is a partner and his residence visa is related to the General Directorate of Residency and Foreigners Affairs. The Ministry of Labour or labour courts have no jurisdiction with regard to the dues of partners. However, the questioner shall refer to the memorandum of association of the company and the clauses related to the manager, the way of withdrawal of a partner and how to dissolve the company. Therefore, the questioner may call the partners for a meeting to settle the matter amicably or resort to the competent court in case the attempt at amicable settlement fails.
Questions answered by advocate Mohammad Ebrahim Al Shaiba of Al Shaiba Advocates and Legal Consultants.