A reader from Dubai asks: I have been working in a company based in a Dubai freezone for two years. I supply goods to a company based in Dubai as part of my job. This company issued me a post-dated cheque for Dh600,000 against goods supplied. However, the cheque bounced on the due date. Now, I have learned that the company is a limited liability company (LLC), a fact that it did not reveal in the course of my dealings. As per my company policy, I am not supposed to accept cheques from a LLC. What is the legal position if I go to court? This company is about to close down due to financial problems.

The questioner should shall file a police complaint against the individual who signed the cheque. The person might settle the cheque amount in full when arrested to avoid being jailed. In case of non-settlement, the questioner should file a civil suit against the company and its manager on the basis that the manager has scammed the questioner by not informing him that the company is a LLC. The questioner shall prove before the court that he has been scammed by providing evidence that the company did not show on its papers that it is a LLC. If the court finds that the manager of the company has indeed violated the law, it might rule against the company and its manager. In such an event, the manager personally and the company may be directed to settle the cheque amount.

Termination of service

A questioner asks: I have been working in a factory for more than two years. A month ago I broke a machine in the course of my work. The manager told me that I would have to pay for the repairs. If I refused, he warned me that my services will be terminated immediately. I agreed to this and the amount was cut from my salary. A week after this incident, however, the manager terminated my services without notice. In the letter of termination, it was mentioned that my dismissal was due to the machine incident. Based on the statement of a colleague working with me on the machine, the factory decided that I had purposely broken the machine. They claim that under the labour law, Article No 120, they have the right to terminate my services. It is also mentioned in my termination letter that I will lose my end-of-service benefits. What should I do in this case? What is the position of the labour law in this matter?

Article No 120 of the UAE labour law under which the company has claimed to have terminated the questioner’s services without notice is not applicable in this case. The termination is against the law as the employer is required to notify the Ministry of Labour about the incident (broken machine) within 48 hours and that the company as a result of such a mistake has incurred material loss. Therefore, I advise the questioner to file a complaint against the company before the Ministry of Labour to claim his rights. He can request the ministry to consider his termination as arbitrary dismissal and request the ministry to refer the complaint to the competent court in case no amicable settlement can be reached with the employer.

Demotion

I have worked in a private school as principal for more than seven years. Two weeks ago, I received a letter from the new owner of the school stating that I should work as teacher as a new principal had been appointed in my place. The letter said that if I did not agree with the proposal I was free to submit my resignation. I did not accept this decision and submitted my resignation. The owner then told me that my resignation was against the law given that the new board of the school had approved the new principal’s appointment. Have I violated the labour law by resigning? What is the position of the labour law on the new school management demoting me from principal to teacher? In case the judgement is in my favour, can I request the court to reinstate me as principal?

According to the Dubai Supreme Court, demoting an employee is a form of arbitrary dismissal. In this event, the employee’s resignation is considered an expression of disagreement. Therefore, by demoting the questioner, the employer has breached the employment contract. The questioner is entitled to all her benefits as well as compensation for arbitrary dismissal. Finally, even if the judgement is in favour of the questioner, the law does not oblige the employer to reinstate the employee.

Questions answered by advocate Mohammad Ebrahim Al Shaiba of Al Shaiba Advocates and Legal Consultants.

— Compiled by Bassam Za’za’, Legal and Court Correspondent