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You are here: BAILII >> Databases >> The Dubai International Financial Centre >> Nate v Nixon [2024] DIFC SCT 513 (29 May 2024) URL: http://www.bailii.org/ae/cases/DIFC/2024/DSCT_513.html Cite as: [2024] DIFC SCT 513

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Nate v Nixon [2023] DIFC SCT 513

May 29, 2024 SCT - JUDGMENTS AND ORDERS

Claim No. SCT 513/2023

THE DUBAI INTERNATIONAL FINANCIAL CENTRE COURTS

In the name of His Highness Sheikh Mohammed Bin Rashid Al Maktoum, Ruler of Dubai

IN THE SMALL CLAIMS TRIBUNAL OF DIFC COURTS
BEFORE H.E. JUSTICE NASSIR AL NASSER

BETWEEN

NATE

Claimant

and

NIXON

Defendant

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Hearing :	21 May 2024
Judgment :	29 May 2024

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JUDGMENT OF H.E JUSTICE NASSIR AL NASSER

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UPON this Claim being filed on 26 December 2023 and amended on 30 January 2024

AND UPON a hearing having been held before H.E Justice Nassir Al Nassir on 21 May 2024, with the Claimant and the Defendant’s representative in attendance

AND UPON reviewing the documents and evidence filed and recorded on the Court file

IT IS HEREBY ORDERED THAT:

1. The Defendant shall pay the Claimant the total sum ofAED 144,369.52

2. The Defendant shall pay the Claimant the Court fee in the sum ofAED 2,887.39

Issued by:
Hayley Norton
SCT Judge and Assistant Registrar
Date of issue: 29 May 2024
At: 2pm

THE REASONS

The Parties

1. The Claimant is Nate (the “Claimant”), an individual filing a claim against the Defendant regarding his employment at the Defendant company.

2. The Defendant is Nixon (the “Defendant”), a company registered and located in the DIFC, Dubai, UAE.

Background and the Preceding History

3. The underlying dispute arises over the employment of the Claimant by the Defendant pursuant to an employment contract dated 4 November 2021 (the “Employment Agreement”). The Claimant commenced employment on 2 December 2021.

4. On 26 December 2023, the Claimant filed his claim with the DIFC Courts’ Small Claims Tribunal (the “SCT”) seeking payment of one month notice, one month salary, 12 days of accrued but untaken vacation leave, and end of service gratuity, the total value of his claims amounts to the sum of AED 144,369.52.

5. On 30 January 2024, the Claimant amended his claim to identify the Defendant to be Nixon.

6. On 7 May 2024, a Consultation was held before SCT Judge Delvin Sumo, however, the parties failed to reach an amicable settlement.

7. In line with the rules and procedures of the SCT, this matter was referred to me for determination, pursuant to a hearing held on 21 May 2024 (the “Hearing”). The Claimant and the Defendant’s representative attended.

The Claim

8. The Claimant commenced employment with the Defendant on 2 December 2021 with a monthly salary of AED 38,000. On 2 November 2023, the Claimant resigned and served his one month notice, and his last working day was on 2 December 2023.

9. The Claimant filed a claim claiming his end of service entitlements in the sum of AED 144,369.52 which consists of the following:

(a) One month salary for October 2023 in the sum of AED 38,000;

(b) One month notice for November 2023 in the sum of AED 38,000;

(c) End of service gratuity for 24 months in the sum of AED 53,169.6; and

(d) Payment in lieu of 12 days; accrued but untaken vacation leave in the sum of AED 15,199.92.

10. The Defendant failed to submit a defence nor did it provide any evidence that the Claimant received his end of service entitlements.

Finding

11. This dispute is governed by DIFC Law No. 4 of 2021 (Employment Law Amendment Law) (hereafter the “DIFC Employment Law”) in conjunction with the relevant Employment Agreement.

12 days of accrued but untaken vacation leave

12. Clause 7.1 of the Employment Agreement provides that:

“Subject to Labour Law, the Employee shall be entitled to unlimited vacation for full pay. Any leave prescribed in the labour law that is not availed shall not accrue beyond twelve (12) calendar months from the applicable year end.”

13. Article 28(3) of the DIFC Employment Law provides that:

“Compensation in lieu of Vacation Leave

(3) Compensation in lieu of Vacation leave, or any amount owed by the employee in respect of excess vacation leave taken, shall be calculated using the Employee’s Daily wage at the termination date.”

14. The Claimant’s daily wage shall be calculated as following:

AED 38,000 x 12 month/260 days = AED 1,753.84.

AED 1,753.84 x 12 days = AED 21,046.08.

I find that the Claimant is entitled to payment in the amount of AED 21,046.08 for accrued and untaken vacation leave. However, I shall only award the Claimant the amount of AED 15,199.92 as this is the amount that he has sought within his Claim Form.

Salary and notice period

15. The Claimant claims the total sum of AED 76,000 as payment for one month salary and notice period for October and November 2023.

16. As the Defendant failed to file any defence, I find that the Defendant shall pay the Claimant the sum of AED 76,000 as payment for the salary of October 2023 in the sum of AED 38,000 and the notice period for November 2023 in the sum of AED 38,000.

End of Service Gratuity

17. The Claimant claims end of service gratuity in the sum of AED 53,169.60 for 24 months of service calculated at 5.83% as described below.

18. For the avoidance of doubt, I shall calculate the end of service gratuity in accordance with Article 66 of the DIFC Employment Law which provides the following:

“(1) An Employee who is not required to be registered with the GPSSA under Article 65(`), and who completes continuous employment of at least one (1) year with their employer, before or after the Qualifying Scheme Commencement Date is entitled to a Gratuity Payment for any period of service prior to the Qualifying Scheme Commencement Date on the termination of their employment. …

(2) An Employee’s Gratuity Payment shall be calculated as follows:

(a) an amount equal to twenty one (21) days of the Employee’s Basic Wage for each year of the first five (5) years of service prior to the Qualifying Scheme Commencement Date; and

(b) an amount equal to thirty (30) days for the Employee’s Basic Wage for each additional year of service prior to the Qualifying Scheme Commencement Date. …

…

(7) From the Qualifying Scheme Commencement Date an Employer shall, on a monthly basis, pay to a Qualifying Scheme, for the benefit of each Employee who is not an Exempted Employee, an amount equal to as least the Core Benefits, which shall be calculated as follows:

(a) five point eight three percent (5.83%) of an Employee’s Monthly Basic Wage for the first (5) years of an Employee’s service, inclusive of any period of employment of Secondment served to prior to the Qualifying Scheme Commencement Date; and

(b) eight point three three percent (8.33%) of an Employee’s Monthly Basic Wage for each additional year of service…”

19. The Claimant’s employment with the Defendant was for the period from 2 December 2021 to 2 December 2023. Therefore, 2 years. As such, the end of service gratuity shall be calculated in accordance with Article 66(7)(a) of the DIFC Employment Law.

20. The Claimant’s basic salary is described at clause 6.1.1 of the Employment Contract and reads that the “basic salary of AED 38,000 per month [is] payable at the end of each month.” Therefore, the Claimant’s basic salary amounts to AED 38,000 and his end of service entitlement shall be calculated in accordance with Article 66(7)(a) which is as follows:

The Claimant’s monthly basic wage is AED 38,000 x 5.83% being the minimum contribution amount defined by the Employment Law = AED 2,215.40 per month x 24 months = AED 53,169.60.

21. As the Defendant has failed to file a defence, I find that the Claimant is entitled to the sum of AED 53,169.60.

Conclusion

22. In light of the aforementioned, I find that the Defendant shall pay the Claimant the total sum ofAED 144,369.52

23. The Defendant shall pay the Claimant the Court fee in the sum ofAED 2,887.39