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You are here: BAILII >> Databases >> The Dubai International Financial Centre >> Mubsid v Mihar [2023] DIFC SCT 352 (14
December 2023)
URL: http://www.bailii.org/ae/cases/DIFC/2023/DSCT_352.html
Cite as: [2023] DIFC SCT 352

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Mubsid v Mihar [2023] DIFC SCT 352

December 14, 2023 SCT - JUDGMENTS AND ORDERS

Claim No: SCT 352/2023

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

BEFORE SCT JUDGE MAITHA ALSHEHHI

BETWEEN

MUBSID

Claimant

and

MIHAR

Defendant

Hearing : 7 December 2023

Judgment : 14 December 2023

JUDGMENT OF SCT JUDGE MAITHA ALSHEHHI

UPON the claim having been filed on 13 September 2023 and amended on 20 November 2023

AND UPON the Defendant’s defence dated 9 November 2023

AND UPON the partial consent order dated 9 November 2023 (the “Partial Consent Order”)
AND UPON a hearing having been listed before SCT Judge Maitha AlShehhi on 7 December 2023,
with the Claimant and the Defendant’s representative in attendance (the “Hearing”)

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 amount ofAED 46,843.25.

2. The Defendant shall pay the Claimant the DIFC Courts’ filing fee in the amount ofAED 936.86.

Issued by:
Hayley Norton
SCT Judge and Assistant Registrar
Date of issue: 14 December 2023
At: 9am

THE REASONS

Parties

1. The Claimant is Mubsid (the “Claimant”), an individual filing a claim regarding his end of service
entitlements.

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

Background and Preceding History

3. The Defendant and Mubit (“Mubit”) entered into an agreement dated 21 April 2014 wherein the
Defendant acted as a supplier for human resources services such as talent sourcing, recruitment,
payroll solutions and ancillary services (the “HR Agreement”).

4. The Claimant and the Defendant entered into an employment agreement on 17 August 2021 in
return for a salary of AED 30,000 to be supplied by the Defendant while the Claimant will be
directly reporting to Mubit (the “Employment Agreement”).

5. Due to the Defendant’s alleged breaches of the HR Agreement, Mubit terminated the HR
Agreement on 1 April 2023 with the notice period ending on 30 June 2023. One additional month
(i.e. 31 July 2023) was subsequently agreed upon to facilitate the transition process of the
employees to the new supplier of Mubit.

6. The Claimant initially filed a case with the Small Claims Tribunal (“SCT”) to claim the amount of
AED 79,700.80 with respect to his July and August salaries, commission, end of service entitlement
and DEWS payment.

7. The parties attended a consultation session on 9 November 2023 which resulted in a partial
settlement of the claim and issuance of the Partial Consent Order.

8. I shall set out below the contents of the Partial Consent Order:

“IT IS HEREBY ORDERED BY CONSENT THAT:

1. The Defendant shall pay the Claimant the amount of AED 32,692.50 by way of wire transfer
by no later than 15 November 2023.
 2. The Claimant’s remaining claims in relation to payment for annual leave, commission and
August salary shall be determined by way of a hearing to be listed by the Registry in due
course.”

The Claim

9. Further to the Partial Consent Order, the Claimant is now seeking the total amount of AED
48,231.18 which comprises of AED 32,813.18 as final settlement and AED 15,418 as commission
owed for the months of July and August 2023.

10. The Claimant submits that he is still owed his final settlement which was circulated to him by
the Defendant on 7 August 2023 (the “Final Settlement”). The content of which is set out below:

“FINAL SETTLEMENT

Computation:

Start date 17 October 2021

End date 10 August 2023

Final Salary AED 10,714.29

Dews July 2023 – August 10, 2023 AED 1,387.93

Leave Encashment AED 19,500.00

Air Ticket AED 1,210.96

Total Final Settlement AED 32,813.18

I hereby certify and acknowledge that upon receiving the amount above, I will have received all
dues owed to me by Emirates Consulting Group LLC .”

11. The Claimant concedes that he had been following up with the Defendant with regards to his end
of service entitlements captured in the Final Settlement to no avail and argues that the Defendant has
the funds but is withholding payment deliberately.

12. At the Hearing, the Claimant confirmed that he is still seeking the missing DEWS payment and
submitted a screenshot of his DEWS account which demonstrates that there is no payment for July
2023.

13. Furthermore, the Claimant submitted a document entitled “compensation statement” which
demonstrates the work that he has done and how much commission is owed to him, and based on
this, he is claiming AED 15,418.

The Defence

14. The Defendant submits that due to its nature as a HR outsourcing firm, the Claimant ought to
retrieve the remaining amounts from Mubit directly on the basis that the Claimant is not an internal
staff member, and the HR Agreement had been terminated as of 1 August 2023. Therefore, it is not
eligible to pay the August salary nor commission.

15. The Defendant further submits that Mubit only approved the billing of the July salary and the
benefits that have already been paid out to the Claimant by virtue of the Partial Consent Order, and
it is not in a position to provide anything else which had not been approved earlier by Mubit.
16. In support of this, the Defendant submitted a screenshot of an excel spreadsheet which shows
the name of all of Mubit’s employees and the approved billing that should be paid by the Defendant
as final payment following termination of the HR Agreement.

17. The Defendant rejects the Claimant’s assertion that his final day was 10 August 2023 and
submits that his final day was 3 August 2023, as mentioned by the Claimant by way of email dated
26 July 2023“In light of this I am concerned about the process for next month as I am finishing with
Mubit 3rd August”.

18. At the Hearing, the Defendant argued that the Claimant has always followed up with them with
regards to his July salary and Final Settlement and never mentioned August salary nor commission
until the claim was filed.

19. The Defendant concedes that the payment made in respect of the Partial Consent Order
represents payment of July salary, bonus, claims and DEWS payment. Therefore, the Defendant
submits that the Claimant cannot claim for the DEWS to be paid on the basis it has already been
paid.

Applicable law

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

Discussion

Is the Defendant eligible to pay the remaining amount to the Claimant given that the Claimant
worked for Mubit and not directly under the Defendant?

21. The Claimant submits that when he reached out to Mubit, they advised him to collect the funds
from the Defendant and submitted a screenshot of an email dated 17 August 2023 to confirm the
same which reads as below:

“It is true that they only charged us with your last salary and not your final settlement but if
they would intent to pay you, they would either contact us or at least pay you the last salary.
They also have a deposit from Mubit from the beginning of our cooperation. So, all in all, they
have plenty of money right now to pay you fully if they wanted.

As Mubit we are trying to get our money back from Mehun with legal representation, and we
are deducting your proportional payment from the amount due to Mubit since we understand
they will need the money to pay you out so, any future excuses from their side are just made-up
reasons”.

22. Further to the above, this supports the Defendant’s defence that Mubit only approved the July
salary and benefits without the Final Settlement.

23. Although I understand the Defendant’s argument that they cannot release any money which has
not been approved by Mubit, I find that the Defendant ought to have included the Claimant’s Final
Settlement in the bill to be approved by Mubit as the Claimant had already resigned in July and
would not be in touch with Mubit’s new HR supplier. I arrived at this decision because there was an
Employment Agreement between the Claimant and the Defendant, and it was the Defendant’s
responsibility to provide such service and maintain the HR records and process payments.

24. Additionally, the Defendant failed to reach out to Mubit to advise upon the next steps in relation
to the Claimant’s Final Settlement given that he was a departing employee.
 25. The Final Settlement was circulated by the Defendant to the Claimant on 7 August 2023 i.e. after
the termination of the HR Agreement. This means that the Defendant was aware that the Claimant is
entitled to receive it and the amounts mentioned therein should have been paid by the Defendant as
explicitly mentioned“I hereby certify and acknowledge that upon receiving the amount above, I will
have received all dues owed to me by Mubi.”

26. I comprehend the Defendant’s argument that the Final Settlement was not billed to Mubit and
that it is why they cannot pay the Claimant. However, I find that it was the Defendant’s duty to bill
it and it failed to do so.

27. Therefore, I find that the Defendant is liable to pay the outstanding amount to the Claimant.

28. As the DEWS payment has already been paid due to the Partial Consent Order, I find that the
Defendant must pay the Claimant the amount of AED 31,425.25 which represents payment of air
ticket allowance, leave encashment and remaining salary as per the Final Settlement.

29. Likewise, I shall award the Claimant his commission for the months of July and August 2023 in
the amount of AED 15,418 on the premise that he would have been paid this amount had the
Defendant billed it to Mubit.

Findings

30. For the above cited reasons, I hereby order the Defendant to pay the Claimant the amount of
AED 46,843.25.

31. The Claimant is entitled to recover the court fee applicable to the filing of this case which is
proportionate to the judgment sum. The Defendant shall therefore pay to the Claimant the amount of
AED 936.86.

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