Labour disputes cannot go to court directly

The Dubai Court of Cassation established a new labour-related principle regarding pending disputes between the employer and the worker.

The Court of Cassation confirmed that “Article VI of the Labour Act 8 of 1980 stipulates that (if the employer or worker disputed any of the rights, they should apply to the competent Labour Department.

Also, in accordance to Article VI of the Labour Act 8 of 1980, in case they couldn’t reach an amicable settlement, they should, within two weeks from the date of submission of the application, refer the dispute to the competent court.

The case will not be accepted if they did not follow the procedures set forth in this article.

According to this principle, the court rejected a lawsuit by a private hospital against a former staff doctor for not following the above measures.

The hospital opened a lawsuit before the Dubai Courts against the doctor asking the court to compel him to pay Dh 1 million as compensation damages for working at a competing medical centre.

The hospital said in its case the contract signed between it and the doctor did not to allow him to work after end of his service for two years at any competitor hospital or clinic.

The Court of First Instance rejected the case of the hospital, which forced it to lead to the Court of Appeal, which upheld the verdict of the Court of First Instance.

Once again the hospital did not accept this ruling and appealed it before the Court of Cassation which supported the verdicts of both the Court of First Instance and Court of Appeal and issued its principle.

The Court of Cassation based its decision to reject the lawsuit of the hospital as the law said not to submit the case directly to the court.

In this case, they must first submit an application to the competent Labor Department to take whatever action it deems necessary for the settlement of the dispute. And, if they couldn’t reach a settlement then they have to refer the dispute to a competent court within two weeks from the date of submission of a request for it.

The court explained that the intent of the law is to strive towards the solution of the disputes that arise between the parties and the opportunity to reach an amicable settlement which means heading to the labor department is a basic action and is among the procedures of the litigation.

Since the hospital did not submit such request, the case was dismissed.

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