Dubai mall operator in $9.6m legal battle with ex-employee

Majid Al Futtaim Holding, the operator of three of Dubai’s largest malls, said it will appeal a court judgment ordering it to pay an ex-employee AED35,390,026 ($9.6m), in what is believed to be one of the biggest employment cases ever heard by the Dubai Courts.

Dubai legal firm Hadef and Partners reported it had successfully obtained a Court of Appeal judgment against the mall operator, which counts the Mall of the Emirates and Ski Dubai among its portfolio.

“The claim was issued in July 2009 following the arbitrary dismissal of a senior officer of the company,” Hadef and Partners said in a statement. “The employee claimed various heads of compensation pursuant to contractual rights that had been specifically negotiated by the parties,” it added.

However, a spokesman for Majid Al Futtaim Holding said the company plans to appeal the decision. “We will appeal the decision. The Court of first instance ruled against the claimant and we will now take the case to the Higher Court. We believe our case is strong and we will vigorously defend the rights of the company. The appeal ruling is not final and is still subject to the ultimate review of the Court of Cassation,” the statement said.

The case is believed to be one of the biggest employment cases to be heard by the Dubai Courts, Hadef and Partners said.

"We are very pleased that the court has shown its willingness to hand down a tough judgment in the interests of justice,” lawyers at Hadef and Partners, Abdulrahman Juma and Clare Raven, said of the decision.

“The legal system needs to provide certainty and parties who negotiate specific contractual terms should have the confidence that they can recover their entitlement through the courts. This is an excellent outcome for Dubai as an international workplace.”

Majid Al Futtaim’s full-year earnings rose 18 percent in its home market of Dubai, it was reported last month.

Revenue rose ten percent to AED18.7bn ($5.1bn), while earnings before interest, taxes depreciation and amortisation, advanced 18 percent to more than AED2.7bn, the company said.

“Strong performance in Dubai helped to offset any softness resulting from regional turmoil,” chief executive officer Iyad Malas said in a statement.

Majid Al Futtaim Holding, operator of Carrefour stores in the Middle East, said more than 130 million people visited the company’s malls in 2011.