By Staff Reporter
The Abu Dhabi Court of Cassation has recently ruled in favour of an employee, ordering her former employer to pay her Dh434,884, while specifically confirming her entitlement to full vacation pay for the entire duration of her employment.
The employee worked for the employer from January 4, 2018, to June 30, 2024, with a basic salary of Dh36,000 and a total of Dh60,000, including profit-sharing.
Upon ending her employment, the employee filed a case claiming several entitlements, including:
Outstanding wages: Dh72,000
Vacation pay: Dh247,464 (initial claim)
Notice pay: Dh60,000
End-of-service gratuity: Dh180,000
Agreed commission: 25% of monthly profits exceeding Dh110,000
Late payment interest: 5% from the date of filing until full payment.
On January 28, the Abu Dhabi Court of First Instance ordered the employer to pay Dh323,400, covering outstanding wages, vacation pay for part of the employment (covering the last two years), and end-of-service gratuity. Other claims, including full commissions and full vacation pay, were rejected.
The employee appealed, and an expert was assigned to review the documents and claims. Following the expert’s report, the appeal court increased the amount due to be paid to the employee to Dh379,400.
The employee then challenged the ruling before the Court of Cassation on three main points:
Commission: She argued the expert miscalculated her entitled commission.
Vacation pay: She claimed the ruling covered only the last two years, while she was entitled to vacation pay for her entire 6 years, 5 months and 26 days of service.
Other legal errors: Alleged flaws in reasoning and application of law.
The Court of Cassation confirmed that the expert’s report on commissions was accurate and based on official documentation such as commission statements and bank transfers, rejecting any additional claims for commissions.
Regarding vacation pay, the court found that previous rulings had only granted pay for the last two years of employment, rather than the full period. Under UAE Federal Labor Law No. 33/2021 and its executive regulations, an employee has the right to receive payment for any unused leave days if they leave the job before taking them, regardless of the leave’s duration, for the period they were not able to use.
The court therefore amended the ruling, ordering the employer to pay Dh434,884 to reflect full vacation pay for the entire employment period. The court also confirmed other claims, including outstanding wages and end-of-service benefits, and ordered the employer to bear court fees, including Dh1,000 for the employee’s attorney.
This ruling underscores the legal protection for employees in the UAE regarding unused vacation leave, confirming that vacation pay must reflect the entire duration of employment, not just a part of it.
Source: Khaleej Times
