Do employers have the right to withhold real estate broker’s commission in Dubai?

Question: I worked for a real estate company for two years, earning a basic and total salary of Dh5000, in addition to a 40% commission on units I sold. I quit my job and demanded my sales commission and end-of-service gratuity.

However, my employer refused to pay my commission, claiming that I had not renewed my real estate broker license in Dubai, which cancels my brokerage services.

My question: does the employer have the right to deprive me of my commission on this basis? Please advise.

Answer: According to the Dubai General Court of Cassation in Appeal No. 1 of 2022, if a mediation contract is ruled invalid, an unlicensed broker or intermediary may not claim compensation, remuneration, or reimbursement of expenses incurred in carrying out the assigned work.

However, your case concerns a worker’s claim against their employer for labour dues in exchange for performing the agreed-upon work under the employer’s instructions. Since your commission is part of your wages and was agreed upon in your employment contract, it is directed at the employer, not the parties involved in the real estate transaction.

This means you have the right to receive your commission as long as you performed real estate brokerage work for the company you worked for, and not independently for yourself.

The court has full authority to determine whether the relationship is an employment relationship or not. The key factor in classifying the contract is dependency, meaning the worker is under the control and supervision of the employer.

Evidence of this dependency includes the employment contract, the type of work assigned, the payment of wages, in any agreed form.

This framework ensures that commissions and other labour dues are protected under UAE labour law.