Can Dubai-based employers legally retain a real estate broker's earned commission?
In a recent case, a worker has filed a labour complaint for unpaid sales commission in Dubai. The worker, who was employed as a real estate broker, claims that they are entitled to their commission for the units they sold while working for the company.
According to UAE labour law, a worker has the right to receive their commission if they perform estate sales work for their employer. This right is protected under the court framework, which ensures the protection of commissions and labour dues.
The worker in question has quit their job and is demanding their sales commission and end-of-service gratuity. In the UAE, filing a labour complaint for unpaid salaries can be done, and the court has the authority to determine if a relationship is an employment relationship.
Evidence of dependency, such as an employment contract, the type of work assigned, and the payment of wages, plays a crucial role in classifying the contract in the UAE. Dependency indicates control and supervision by the employer, which is a key factor in the classification.
In this case, the worker had a basic and total salary of Dh5000, in addition to a 40% commission on units sold. If a commission is agreed upon in an employment contract in Dubai, it is considered part of the worker's wages. Therefore, the employer's refusal to pay the commission in this case may be unlawful.
It is important to note that in Dubai, brokerage activities typically require a valid license under Dubai law for legal commission entitlement. However, a worker's claim for labour dues in exchange for performing the agreed-upon work is directed at the employer.
The Dubai General Court of Cassation ruled on Appeal No. 1 of 2022 regarding the legality of withholding real estate commissions. The court's ruling will likely set a precedent for similar cases in the future.
For those seeking legal advice, an online service called Ask-The-Law is available in the UAE. This service allows individuals to ask legal questions and receive advice from qualified lawyers.
There are also news articles available on filing labour complaints for unpaid salaries in the UAE and settling fines for ghost employees in the UAE. These articles provide valuable information for workers who find themselves in similar situations.
In conclusion, UAE labour law protects workers' rights to receive their commissions if they perform estate sales work. Workers who believe they are entitled to unpaid commissions should consider filing a labour complaint and seeking legal advice to protect their rights.
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