**Question:** I work as a salesman at a mainland company in Dubai. My offer letter includes details about my monthly salary, benefits, and commissions for exceeding my targets. While my salary is always paid on time, my commissions are inconsistent—sometimes I receive them, but not always. Is there a legal way to address this issue?
**Answer:** In the UAE, an employee’s salary includes any commissions offered by the employer, as long as these are specified in the employment contract.
Under Article 1 of Federal Decree Law No. 33 of 2021 on the Regulation of Employment Relations, “Salary” is defined as the basic salary plus any allowances, whether in cash or in kind, that are specified in the employment contract or by law. This may include benefits, cash equivalents, or allowances given for effort, hazards encountered, cost of living, or performance-based incentives such as a percentage of sales or profits.
Typically, a signed offer letter is seen as an informal agreement between an employer and a prospective employee, establishing mutual understanding. However, a signed employment contract is a formal, legally binding document.
Therefore, while all contracts are agreements, not all agreements are contracts.
An employment contract registered with the Ministry of Human Resources and Emiratisation (MoHRE) is legally enforceable. In contrast, the details in an offer letter may not carry the same legal weight.
However, if your MoHRE-registered contract does not mention commissions, but they are specified in the offer letter, you may still be entitled to claim these commissions. This is especially true if the offer letter indicates that paying commissions is a standard practice within the company.
An offer letter may be treated as a binding agreement if it contains terms that are more beneficial to the employee, in accordance with Article 65 (1) of the UAE Employment Law. This article states that the rights laid down in the Decree-Law represent the minimum standards for employees, and more favorable terms in other agreements may be considered valid.
In case of a dispute over commission payments, a UAE court with jurisdiction over employment matters may decide on the breakdown and amount of the employee’s salary, including allowances and commissions, as per Article 22 (1) of the UAE Employment Law.
Given these legal provisions, if your employment contract does not specify commission terms but your offer letter does, you may request your employer to pay you the commission regularly as agreed in the offer letter. If commissions are paid inconsistently, it could be argued that they are part of the standard practice, and your employer may be required to honor them.
If your employer continues to withhold the commission, you may consider filing a complaint with the MoHRE. If the issue cannot be resolved amicably, you can escalate the matter to a court with jurisdiction in Dubai.
Source : Khaleejtimes