Company Dismisses Worker After Deducting Salary for 6 Years – Court Rules in His Favour with BD 27,000

TDT | Manama

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A company wrongfully dismissed a worker and failed to pay his rightful entitlements. Over a six-year period, the company deducted over BD 18,000 from his monthly salary, in addition to deducting Labour Market Regulatory Authority (LMRA) fees and delaying payment of his wages. The worker (an inspector) filed a labour lawsuit demanding payment of his overdue wages and entitlements.

The High Labour Court ruled in favour of the worker, ordering the company to pay him BD 27,435 for overdue wages, outstanding entitlements, and compensation for his wrongful dismissal.

According to the worker's attorney, Siddiqa Al Mawali, her client joined the company as an inspector in November 2017 under an employment contract with a monthly salary of BD 1,200.

From January 2018 to May 2023, the company deducted a total of BD 18,935 from his salary.

Additionally, they deducted BD 5 per month for LMRA fees, totaling BD 330.

Al Mawali stated that the company terminated the worker's employment contract on April 26, 2023, with a one-month notice period, without providing a valid reason or legal justification.

She added that the company's witness testified that the worker had been dismissed in April 2019 but had continued to visit the company for personal matters.

The witness claimed that the worker was no longer employed, as per instructions from the administration.

Al Mawali presented conclusive evidence, including the worker's bank statements, to prove that the employment relationship continued until May 25, 2023.

The bank statements showed that the worker received parts of his salary until July 7, 2022.

After that, the company sent his salary through NAFEX, using a balance issued to the exchange company containing the worker's ID card number, name, the company's name, and the salary for September 2022.

The court ruled that the company must pay the worker BD 18,735.5 for overdue wages. The interest rate on overdue wages is 6% per year for wages that were overdue for six months or less.

This rate increases by 1% for each additional month of delay, up to a maximum of 12%, until full payment.

The court also ordered the company to pay the worker BD 1,275 for annual leave allowance, BD 3,525 for end-of-service gratuity, and BD 3,900 for wrongful termination.

The court will also grant the worker a service certificate for the period from December 27, 2017, to May 25, 2023. The annual legal interest rate on these payments is 1% from the due date until full payment, in addition to expenses and BD 50 for attorney fees.