FINANCIAL NEWS

Ruler adds commissions to end-of-service calculations

28 Jun 2011

(MENAFN) Dubai’s highest court ruled in favor of a salesman who sued his previous employer on the ground that the salesman’s end of service benefits were calculated without his commission income, reported The National.

The salesman case was first rejected by the Court of First Instance, but the salesman appealed to the Court of Cassation and won the case.

This case is a first in the UAE and might become a leading step for better benefits of salesmen in the country. It is a common practice that salesmen are paid a very humble basic salary combined with a motivating commission-on-sale system. This system was created as an incentive for salespersons to close more deals. However and on the long run, this made things worse for salespersons when it came to their end of service benefits as they are calculated based solely on the basic salaries.

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