Employee still waiting for Dh556,034 gratuity

Thursday, May 30, 2013

Dubai: An Emirati manager is still waiting for Dh556,034 in end-of-service benefits from a foreign international company despite a labour court verdict in his favour.

Luay Mahfood, the manager, said the company has now shut its office in Dubai and left the UAE, leaving him struggling for his rights.

He told Gulf News that he filed a case against Ali Reza Soltani, the owner of WiMAX, NewNet and Skyview Capital who lives in the USA, for not paying his dues and salaries.

“I worked for Motorola Networks in 2001 at its regional head office in Dubai until 2011,” he said.

“In 2011, Motorola sold the Networks business to Nokia Siemens Networks [NSN] and I became an NSN employee. In doing so, we had to cancel the Motorola UAE employment contract and sign on with NSN. This included a standard Tecom contract since NSN was operating under Tecom,” he said.

Mahfood said that in 2012 NSN sold part of the Motorola Networks business called WiMAX to NewNet Communications Technologies in Connecticut owned by the private equity firm Skyview Capital in the USA.

“As employees we received an e-mail from the then HR director welcoming us into NewNet and of course were since paid by NewNet in the US. Since NewNet had no presence in the UAE, they opened an office in Tecom so visa transfer was easy for all employees,” he said.

He said during the move from both Motorola to NSN and later from NSN to NewNet the employees asked for their end-of-service benefits to be paid, but both companies refused saying these would be transferred to NSN/NewNet and be paid there when needed. “My job description and line of reporting remained the same from Motorola to NSN and later on to NewNet. As a WiMAX employee, my salary and expenses were wired to my bank account each month from NewNet in the US,” he said.

Bank loans

“By the end of last year I was called into the office by my manager who handed over a layoff notice from the CEO of NewNet saying that WiMAX Networks [NewNet] could not pay benefits owed. In the letter from the manager they admit they have to pay but they claim not to have the cash.

“I am 57 years old and nearing my retirement age and I was banking on this money to tide me over in case of termination until I got another job and for retirement,” he said.

“I wrote two e-mails to the company’s owner, Soltani, pleading with him to take action regarding his company’s actions and telling him of the difficulties he has unjustly put me under.

“I have bank loans amounting to Dh270,000 and the bank will not understand any language but want to be paid their money. I also told him that I have two children studying in the USA,” he said.

“I have worked hard in my career, it is inhumane and unethical by all standards not to pay our dues,” he said.

“I have 12 years’ accumulated gratuity and the UAE Labour Law states that I will have to be paid 21 days of the basic salary for the first five years and 30 days of the basic salary for the remaining seven years. Additionally, I have to be paid one month full salary for the notice period and three months’ full salary as a redundancy package. I also have vacation days which I have not taken and should also be paid for this,” he said.

He said he filed a case at the labour court so it could decide whether Motorola, NSN or NewNet had to pay his dues.

Court documents show that the verdict was in favour of Mahfood against both NewNet and WiMAX Networks. Both Motorola and NSN were acquitted.

WiMAX Networks failed to respond to the court verdict as the company closed its doors in Dubai and the workers’ visas were cancelled.

Gulf News tried to contact a representative from NewNet and WiMAX Networks but no one was available to comment.

By Bassma Al Jandaly Senior Reporter