Claim No. SCT 134/2020
THE DUBAI INTERNATIONAL FINANCIAL CENTRE
COURTS
In the name of His Highness Sheikh Mohammed Bin Rashid Al Maktoum,
Ruler
IN THE SMALL CLAIMS
TRIBUNAL
BEFORE SCT
JUDGE
BETWEEN
LORELEI
Claimant
and
LEIA HOSPITALITY, DUBAI DESIGN DISTRICT – LEAH RESTAURANT LTD
Defendant
| Hearing | : 17 June 2020 |
|---|---|
| Judgment | : 18 June 2020 |
JUDGMENT OF SCT JUDGE NASSIR AL NASSER
UPONthis Claim being filed on 20 April 2020
AND UPONthe Claim being Amended on 29 April 2020
AND UPONthe Defendant filing
AND UPONa Jurisdiction
AND UPONthe Jurisdiction Judgment of SCT Judge Maha Al Mehairi dated 18 May 2020 finding that the DIFC Courts have the jurisdiction to hear and determine this claim
AND UPONa Hearing having been held before SCT Judge Nassir Al Nasser on 17 June 2020, with the Claimant and the Defendant’s representative in attendance
AND UPONreading the submissions and evidence filed and recorded on the Court
IT IS HEREBY ORDERED THAT:
1. The Defendant shall pay the Claimant the sum of AED 12,000.
2. The Defendant shall pay the Claimant the Court fees in the sum of AED 367.50.
Issued by:
Nassir Al Nasser
SCT Judge
Date of issue: 18 May 2020
At: 11am
THE REASONS
The Parties
1. The Claimant is Lorelei (the “Claimant”), an individual filing a claim regarding his employment at the Defendant company.
2. The Defendant is Leia Hospitality, Dubai Design District – Leah Restaurant Ltd (the “Defendant”), a restaurant located in the DIFC
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 10 February 2019 (the “Employment Contract”).
4. On 1 April 2020, the Defendant terminated the Claimant’s employment due to the global crisis of Covid-19. The Claimant was terminated without notice nor payment in lieu of notice, in addition to other deductions without the Claimant’s approval.
5. On 20 April 2020, the Claimant filed a claim in the DIFC Courts’ Small Claims Tribunal
6. The Defendant responded on to the Amended Claim on 28 May 2020 and 17 June 2020.
Discussion
7. At the hearing, the Claimant argued that as per his Employment Contract he is entitled to the sum of AED 12,000 which consists of the following:
(a) One-month notice period in the sum of AED 6,000;
(b) End of service gratuity in the sum of AED 2,800;
(c) Annual leave accrued but untaken in the sum of AED 1,400; and
(d) Annual flight ticket in the sum of AED 1,800.
8. The Defendant did not contest the Claimant’s entitlements as per the Employment Contract but argued that due to the Pandemic of Covid-19 which has affected the business and the financial position of the Defendant they are unable to pay the Claimant his notice period.
9. However, the Defendant agreed to pay the Claimant his end of service gratuity, accrued annual leave and an annual flight ticket.
Findings
10. I find that the Defendant partially settled the claim by offering the Claimant the sum of AED 6,000 which consists of payment for his end of service gratuity, accrued annual leave and an annual flight ticket.
11. In relation to payment in lieu of notice, the Employment Contract stipulates that:
“Pre-confirmation, either party (the company or the Employee) can terminate employment during the six months’ probation period at any time.
Post-confirmation, two months’ notice should the employee wish to resign, and one-month notice should employer wish to terminate the agreement…”
12. On 1 April 2020, the Defendant terminated the Claimant’s employment. Therefore, as per the Employment Contract, the Claimant is entitled to one-month notice in the sum of AED 6,000.
13. Although the Defendant argued that they are in financial difficulty due to the Covid-19 pandemic which had a negative impact on the business, I find that the Defendant is obliged to honor the agreed terms of the Employment Contract.
14. Therefore, I find that the Defendant shall pay the Claimant the sum of AED 12,000 plus the Court fees in the sum of AED 367.50.
Issued by:
Nassir Al Nasser
SCT Judge
Date of issue: 18 May 2020
At: 11am