The Al Ain Civil, Commercial and Administrative Court has ordered a company to pay AED 344,338 to a former employee, ruling that his commission became payable once a major project was secured, even though the project was still ongoing.
In its decision, the court rejected the company’s claim that commission was only due after full project completion and final payment from the client, saying there was no evidence to support such a condition, the Emarat Al Youm reported.
Court records show the employee worked for the firm for nearly four years on a monthly salary of AED 6,000, with commission tied to projects he brought in. During his employment, he secured a contract valued at AED 60.293 million, which was signed and implemented by the company.
The employee told the court that the company’s general manager informed him by email that, because of the project’s large value, a reduced commission rate of 0.5 percent would apply. This amounted to AED 301,469. He also claimed AED 39,869 in unpaid commission from earlier work in 2024.
When the employee later asked for his commission to be released, he said the company terminated his employment instead of settling the amount.
The company denied the allegations and argued that the lawsuit was filed too early since the project was still under execution. Its legal counsel claimed the commission was contractually linked to the client’s final payment and asked the court to dismiss the case.
However, a court appointed expert found that the parties had agreed to calculate commission based on the total project value, not on when payments were fully collected. The expert report showed the company had already received AED 23.401 million by the time the employee’s contract ended and AED 30.252 million by the time technical handover took place.
In its ruling, the court said the company failed to prove the existence of any clause making commission conditional on full settlement by the client. The court added that the documents and correspondence presented supported the employee’s claim that commission entitlement was triggered once the project was secured.
The court ordered the company to pay AED 301,469 for the project commission and AED 39,869 for outstanding dues, along with court costs and AED 1,000 in legal fees, bringing the total amount to AED 344,338.
For employees on commission-based pay in the UAE, the ruling reinforces that commission rights depend on what is clearly agreed in writing. If commission is tied to project value, employers cannot delay payment by citing project completion or by ending employment mid-project.