Dubai: What are the legal rights of employees working in a UAE-based branch of a foreign company? Are their labour rights based on the jurisdiction of the UAE or the country where the company has its headquarters?
A Gulf News reader wrote in, asking: “I have been employed with my company for six years now. The company has a valid commercial trade license and is registered as a ‘Branch of Foreign Facility’. Due to the global economic downturn, the company's main registered office in London UK, is currently undergoing liquidation and will cease to exist by the end of the month. The Dubai office has also lost 90 per cent of its business. I was told that once the UK office closes legally, the Dubai branch will also cease to exist. Is this legally possible in UAE? That is my first question. I am the sole employee on my company's visa. I have not been paid my salary for the last nine months and the company is putting pressure on me to cancel my current visa and to move to another company's visa, within the group, registered in Dubai. I am very skeptical to move to the second company as employees there too have not been paid for six months or more. My second question is - with the UK office no longer legally in existence and the Dubai branch shutting down as a result, will I lose my dues?”
Gulf News raised the query with Reda Hegazy, Senior Associate and Arbitrator and Al Suwaidi and Company, who spoke about how the law applies to UAE-based branches of foreign companies.
“Yes, it is legally possible that the Dubai branch office will close because it does not have a separate legal identity and is therefore treated as an extension of the foreign company,” he said.
“As to the second query, the employee has the right to file a labour claim for his entitlements against the branch. He is protected under the UAE Labour Law,” he added.
Yes, it is legally possible that the Dubai branch office will close because it does not have a separate legal identity and is therefore treated as an extension of the foreign company.
Reaching out to the Ministry of Human Resources and Emiratisation (MOHRE)
According to Hegazy, even if the employee works at a UAE-based branch of a foreign company, he or she still has the right to file a complaint with the Ministry of Human Resources and Emiratisation (MOHRE) for any unpaid salary and compensation.
MOHRE manages and regulates employer-employee relations in the UAE and any dispute between the two parties can be escalated with the authority for a solution based on the UAE Labour Law.
You can file a complaint with MOHRE through the following options:
1. Call the Ministry’s hotline on 800 60.
2. Download the MOHRE app and file a labour complaint
3. Visit www.mohre.gov.ae and select the option for filing a labour complaint.
You would need to create an account if you are choosing the second and third option. You would need your passport details and work permit (labour card) number to do so.
Once you file a complaint, you will receive a call within 72 working hours from a legal advisor with the Twa-fouq centre, who will try to initially find an amicable solution to the issue.
There is no fee charged from an employee for this process. However, if the complaint is not resolved amicably and goes to court, there may be a fee based on the amount of compensation being claimed.
What is Twa-fouq?
Twa-fouq centres are service centres licensed by MOHRE and receive labour complaints submitted by an employer or an employee.
The centre investigates the complaints and provides recommendations to MOHRE for approval and to take a decision on the dispute resolution or refers the case to the judiciary.
It also provides legal advice and replies to inquiries related to work relations.
Procedure for filing labour complaint
Based on Article 6 of the UAE Labour Law, this is how the Ministry handles labour complaints:
• Applications of labour disputes must be made to the Ministry of Human Resources and Emiratisation.
• The Twa-fouq department concerned will call the two parties to the dispute and take action it deems necessary to settle the dispute amicably. At this stage, the parties are not obliged to accept the settlement.
• If an amicable settlement is not reached, the department must, within two weeks from the date of receiving the request, forward the dispute to the Labour Court concerned.
• The referred case must be accompanied with a memo giving a summary of the dispute, evidence of both parties and the comments of the labour department concerned.
• The competent court will, within three days from the date of receiving the request, fix a hearing for the claim and notify the two parties.
• The court may request a representative from the department of labour to appear and explain the contents of the memo submitted by it. The court will then issue its judgement on the matter.
