A look at how end-of-service benefits are calculated according to the labour law
Question: I have been working for a private company for more than five years on a salary plus commission system. It has been more than four years now, and I have not received the commission.
Every time the company asks me to wait because these commissions were not paid by other companies who owed them. A month ago, I signed an agreement on a commission-only system, and the monthly salary was stopped. I currently want to resign.
Do I have the right to claim previous commissions that were not paid to me? Regarding the end-of-service benefits, is it calculated for the period in which I was receiving monthly salaries or based on the commission system to which I was transferred?
Answer: You have the right to claim previous commissions that were not paid for the last two years only based on Article 54 of the Labour Law which mentions that a lawsuit related to any of the rights accrued under the provisions of this Decree-Law shall become time-barred after the lapse of two years from the date of entitlement to the right that is the subject matter of the lawsuit.
But if there is a written declaration from the company that they owe you these commissions for the last four years, then you have the right to take them all.
The end-of-service benefits shall be calculated based on the commission system to which you were transferred, because you signed and accepted the amendments which will be taken into account in the calculation of your labour rights according to the established rules of Dubai Courts that the employment contract is a consensual contract, meaning that the agreed-upon wage may be modified, whether by increase or decrease, if the two parties agree to this modification explicitly or implicitly.
The end-of-service benefits are calculated with the same method as calculating the wages of workers on piecework basis according to Article 23 of the Labour law that the daily wage of workers who receive their wages on piecework basis shall be calculated according to the average amount the worker received for the actual working days during the six months preceding the request or claim regarding any issue related to the wage.
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