Employer Compensation

In ruling upon an action initially filed before the Dubai Court, the Court of Cassation held that an employer and an employee could not agree to increase the compensation to be paid by the employee to the employer upon an early termination of a contract which had been fixed for a definite period. The Court of Cassation further held that any agreement contradicting such provision should be considered null and void.

Claim
A labour action was filed by a FZE company (the "Claimant") against an ex-employee (the "First Defendant") and another FZE Company (the "Second Defendant"). The Claimant requested the Court order the Defendants to pay him jointly and severally the amount of AED 20 M as a compensation for the moral and material damages suffered by him in addition to interest and legal costs.