Dubai: What to Do When Employers Delay Commission Payments?

Question: I am currently employed as a salesman at a mainland company in Dubai. My offer letter specifies a monthly salary, benefits, and commissions for achieving sales targets. While my salary is consistently paid on time, the payment of commissions has been inconsistent, with commissions being paid sporadically. Could you advise on the legal recourse available for addressing this issue?

Answer: In the UAE, commissions promised by an employer and outlined in the employment contract are legally considered part of the employee’s salary. Article 1 of Federal Decree Law No. 33 of 2021 defines 'salary' as encompassing the basic salary, allowances, and any additional benefits, including commissions, if specified in the employment contract or decree-law.

While a signed offer letter is typically viewed as an informal agreement, a formal employment contract registered with the Ministry of Human Resources and Emiratisation (MoHRE) is legally binding. The offer letter may not hold the same legal weight as the formal contract. If the formal contract does not mention the commissions outlined in the offer letter, you may still have a claim based on the offer letter if it reflects standard practice within the company.

Article 65 (1) of the UAE Employment Law ensures that the rights under the decree-law do not negate any additional rights provided by other agreements or documents. Therefore, if the offer letter includes more favorable terms, those terms might still be valid.

If there is a dispute over commission payments, employees can first address the issue with their employer. If this does not resolve the problem, filing a complaint with MoHRE is the next step. If necessary, the matter can be taken to a UAE court, which will determine the payment and breakdown of salary components, including commissions, in accordance with Article 22 (1) of the UAE Employment Law.

In summary, if your employment contract does not specify commissions but your offer letter does, you can request payment based on the offer letter. If the issue persists, seeking resolution through MoHRE or the courts is advisable.

News Source: Khaleej Times