Labour disputes double in downturn year

Labour disputes in Dubai rocketed 140 per cent during 2009 with another 50 per cent rise expected this year.

Head of Dubai Labour Courts, Judge Ahmed Abdullah Hussein, told Emirates 24|7 the number of disputes filed more than doubled from 2,017 in 2008 to 4,837 in 2009.

He said the number of labour disputes have more than doubled since Dubai is one of the most attractive investment hubs in the region and attracts large number of foreign workers, especially with the magnitude of infrastructure and real estate projects on.
In a major achievement, the court has cleared 4,053 cases filed last year. It moved 680 of the labour cases to this year’s list, the judge said.

Of the total number of cases pending, 405 – or eight per cent – awaits verdict.

Dispelling the general notion that labour disputes have been rising due to issues related to closures and job losses linked to the global economic recession and its ramifications, Hussein said the financial crises contributed only 20 per cent of the total number.

He said 60 per cent of the annual rise in labour disputes was related to the construction sector that witnessed a boom until things went wrong due to the recession.

“The remaining 20 per cent was due to companies taking advantage of the crises to terminate employees, or non-payment of their end-of-service dues,” he said.

Hussein cited examples of a well-known stationery chain and a popular Asian eatery that sacked employees by blaming the economic crisis.

The restaurant chain, he said, served the lower middle class and sold meals for Dh10.

“While five-star restaurants may get affected with consumers tightening their spending, I wonder what forced restaurants that sell meals at Dh5 or Dh10 to sack employees,” he added.

The judge said that co-operation between departments of labour and naturalisation and residency have resulted in a massive improvement in the time taken to solve labour disputes. Quick trial and ruling means that even major cases are solved in 45 days. But, he added, the rights of workers are always safeguarded.

The labour court has engaged 11 judges, three more for settlement and reconciliation, besides the head himself, to deal with the rising number of cases.

Lauding the role played by the court in preparation and settlement since inception in March 2008, Hussein said up to 65 per cent of the disputes were settled out of court.

“This has helped save time, effort and money to the government, the courts and the litigants themselves,” he said.

Quick solution of all labour disputes is of prime importance to all judges while accepting cases on their files, he said. Most complaints – whether from workers or employers – are solved amicably with the intervention of the judge of preparation and settlement.

Citing another example, Hussein said a worker who approached the court with a genuine complaint of non-payment of wages would readily accept Dh30,000 instead of the originally due Dh50,000 if proposed by the judge. This saves a lot of trouble for all parties involved, he said.

Since a worker is always the weaker party in the dispute, the judge of settlements ensures the employers produce all records to settle the dispute. The judge would consider the worker’s rights having been violated if the employer fails to deliver the records and sufficiently satisfy the court, Hussein said.

The complaint is referred to a court only if both sides fail and the dispute lingers.

Deploring the conduct of some unscrupulous lawyers, the judge said they ratchet the demands even if the litigant is fine with the settlement. For example, if a worker accepts Dh20,000 to close the case, the lawyer would insist on going for Dh100,000, just to increase his remuneration that is based on commissions or a per cent of the settlement amount.

To avoid such instances, he urged workers not to fall for the guiles of such lawyers.

Addressing the issue of most workers unable to afford lawyers to fight for their rights, the judge said all they had to do was to approach the departments of labour or residency and naturalisation to file a complaint. Such complaints are immediately referred to the labour court. A worker can defend himself, if need be, and the court would pay for legal notices to be published in newspapers.

Egyptian worker Mahmoud Antar on the rolls of a contracting company was one of the litigants who opted for an amicable settlement after the court’s intervention. Instead of the Dh7,000 due to him, he settled for Dh4,000.

He decided to accept the settlement since the company owned by another Egyptian had gone bust with nothing left in its bank account.

But there are others like Ahmed El Najar, an Egyptian salesperson who worked for an advertising company, who had to wait for a court verdict after the company failed to heed the judge of settlements.

The court later ruled in his favour and ordered the employer to pay Dh4,000 besides a flight ticket to his home destination. He, however, refused to accept it and has gone on appeal claiming Dh14,000 as his dues.

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