High Court Rules Legal Fees Can Be Claimed in Employment Cases

High Court Rules Legal Fees Can Be Claimed in Employment Cases

The High Court has ruled that legal fees in employment-related disputes can be claimed even if they are not mentioned in an employment contract. The ruling establishes that the losing party in such cases may be required to cover the opposing side’s legal expenses.

Background of the Case

The ruling came after a dispute between a doctor and the Civil Service Commission (CSC). The doctor had not been granted a rightful promotion and lodged a case with the Employment Tribunal. The Tribunal not only ruled in favor of the doctor but also ordered the CSC to cover legal fees.

Challenging the decision, CSC appealed to the High Court, arguing that neither the Civil Procedures Act nor the doctor’s employment contract stated that legal fees must be paid in such cases.

High Court’s Interpretation

In its judgment, the High Court emphasized that civil cases generally allow for the recovery of legal fees from the losing party. Employment-related disputes, the court noted, should not be treated differently. Since the Employment Tribunal is legally empowered to issue rulings on workplace disputes, it can also order one side to pay legal costs.

The court added that even in situations where employment contracts do not include provisions for legal fees, the Tribunal has the authority to decide whether such fees should be awarded after reviewing the case.

When Legal Fees May Apply

The ruling clarified that legal fees can be ordered in cases where there has been abuse of the system, deliberate delays, or misuse of the Tribunal’s time. This ensures that one party is not unfairly burdened with the cost of unnecessary or prolonged litigation.

In this specific case, the doctor’s promotion was granted only after the case was already filed with the Tribunal. The High Court determined that this circumstance justified awarding legal fees to the claimant.

The case was heard by a three-judge bench of the High Court, consisting of Judge Hussain Mazeed, Judge Mohamed Shaneez Abdulla, and Judge Fathimath Faruheeza. Judge Mazeed presided over the hearings. The panel unanimously ruled that the CSC must cover the claimant’s legal expenses.

A Precedent for Employment Cases

This decision is expected to shape how future employment disputes are handled in the Maldives. By ruling that legal fees can be awarded even if they aren’t specifically stated in a contract, the High Court has set an important precedent that supports fairer treatment of employees seeking justice through the Tribunal.