UAE Exchange was seized by the UAE Central Bank in March 2020 after it ran into financial troubles. EXPAT MEDIA

UAE Exchange employees hope for payout as salary dispute continues

Former employees of UAE Exchange continue to raise their salary dispute with the now defunct company, with one telling Expatmedia.net that the money exchange firm owes him Dh100,000 in unpaid salaries. UAE Exchange was seized by the UAE Central Bank in March 2020 after it ran into financial troubles. The company had more than 150 branches in the UAE before it was shut down. Embattled former employees of UAE Exchange have taken to LinkedIn and social media in hopes of receiving some, if not all their unpaid salaries and end-of-service gratuities. Speaking to Expatmedia.net, S.S.R. (full name withheld) said UAE Exchange owes him a total of Dh100,000 in unpaid salaries. He worked as a manager at the company’s Abu Dhabi headquarters from 2013 to 2020. S.S.R. said he stopped receiving his salary in March 2020, but was promised by HR personnel that he would get paid. “The HR director and associate directors used to send a regret letter every six months stating that due to financial conditions end of service benefits would be paid out after six months. And then before the due date arrives, the timeline is pushed again by six months,” S.S.R. told Expatmedia.net. S.S.R. filed a labour dispute at the Ministry of Human Resources and Emiratisation (MOHRE), and the case was referred to the Court of First Instance. “No one came to represent UAE Exchange in the court and the order was passed in my favor directing UAE Exchange to pay me the dues. However, I have not been paid yet,” S.S.R. said, “I am yet to file for getting execution judgement as I don’t have time to pursue legal proceedings.” S.S.R. said the issue has caused him so much stress. “I had just gotten married in January 2020 and moved to Abu Dhabi with my wife. The Covid pandemic and lockdown also added to the anxiety and uncertainty for my family and I, while there was no salary payout,” he said. He hopes that appropriate legal action will be taken for the delay in salary payouts “and compensation should be given for the financial and psychological torment that the employees and their families have been subjected to.” Another UAE Exchange former employee, S.T. (full name withheld), said he is also waiting for his unpaid salaries. He worked at the company from 2019 to 2021. Like S.S.R., S.T. said he also last received his salary in March 2020. “I received email from HR saying they will pay by July 2023 which was the last email received. Previously, they said they will pay in December 2022,” S.T. told Expatmedia.net. S.T. said he initiated a labour complaint with MOHRE but had to leave for India in June 2020. “I couldn't survive here anymore. My dad lost his business in the same year and we were out of income,” S.T. said. “I tried doing multiple jobs in Kerala to survive and I came back to Dubai on April 2021 and it was very difficult to find another job,” he said, adding that not getting his salary payout from UAE Exchange compounded to his problems. “It was really such a hard time for me as well as for everyone who worked there. I at least hope they give my pending dues because it could help my family a lot for the loss incurred,” S.T. said.

Compensation for employees when businesses in UAE close

According to law firm Farahat & Co., compensation for employees who worked for a business that closed down “is not always black and white.” “Should the employment agreement be of a term that was determined in the contract and the employer rescinds, the employee is bound to get compensation for the damage he or she incurred,” according to Farahat & Co. The amount of compensation to the employee "will not exceed the total wage that is due for three months or for the remaining duration of the employment contract, whichever is the shorter duration.” The law firm noted that “the period of service of an employee will only make a little difference with respect to the amount that is due for early employee contract termination. If there is gratuity pay entitled to the employee, then he or she will get it along with the compensation given for employer terminating the employment contract of the employee.” “As for when the compensation will be given, it will depend on a lot of factors. To hasten the release of what is due to you.. is best if you claim it through a liquidation expert in UAE,” according to the law firm. ICA/Expat Media
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