Legal Advice No. 3781
Issued on 06/09/2023
1- Cases of entitlement of retirement pension.
2- The legislator prohibited the combination of pension and salary for those whose services were terminated, except in the event where the total pension and salary do not exceed nine thousand Dirhams. When that total is exceeded, the right shall be limited to what does not exceed such amount, and the same for the insured who has completed 25 years in service, without this covering those whose services were terminated by a disciplinary decision of dismissal, termination, or by a judicial ruling, or those whose services were terminated for other reasons, even if they have spent 25 years in service, taking into account Clause (2) of Article 36 of the Pensions and Social Security Law in their regard.
3- Applying the text of Clause (3) of Article 36 of the Pensions and Social Security Law in the event of termination of service for restructuring purposes, in accordance with Clause (11) of Article 16 through a prohibition [of combination of] the pension and the salary, even if the employees have spent 25 years in service, taking into account the provisions of Clause (2) of the same Article.
Request to express legal advice regarding the permissibility of combining the retirement pension and salary for employees whose services were terminated by a decision of the employer due to restructuring purposes.
Whereas the Legislation Department cited that what is established after reviewing Article (16) of Federal Law no. (7) of 1999 promulgating the Pensions and Social Security Law and its amendments, is that the pension is due in the cases that were mentioned exclusively in that Article, and among them the case mentioned in Clause (6), which is the termination of service of the insured by dismissal, termination, or referral to retirement by a disciplinary decision or a judicial ruling, if he has had a period of subscription in such insurance for at least fifteen years, and the case mentioned in Clause (11), which is the termination of service of the insured for reasons other than those stipulated in the previous Clauses, if the period of his subscription in the insurance is at least twenty years.
For Article (35) of the same Law, which stipulated that: “It shall not be permissible for a pensioner to combine two pensions from the Authority, and if he is entitled to two pensions, the greater of both shall be paid to him. He shall also not be permitted to combine the pension with any salary he receives on a periodic basis from any other entity in the State. If the salary is greater than the pension, the payment of the pension shall be suspended until the end of his subsequent service. However, if the salary is less than the pension, he shall be given the difference between the salary and the pension, and the pension shall be repaid upon the end of his service.”
For Article (36) of the same Law, which stipulated that: As an exception to the provisions that prohibit combining two pensions or a pension and a salary, it shall be permissible to combine them in any of the following cases:
1- Cases of combining the two pensions or the pension and the salary prior to the implementation of the provisions of this Law.
2- If the total of the two pensions or the pension and salary received by the pensioner does not exceed nine thousand Dirhams, then if it exceeds this total, his right shall be limited to what does not exceed such amount.
3- If the pensioner has spent twenty-five years or more in government work for which he is entitled to a pension, he may combine this pension with any salary he receives from any entity in the State on a periodic basis, regardless of their combined value, except for the two cases stipulated in Clauses (6, 11) of Article (16) of this Law, where the provision contained in Clause (2) of this text shall apply.
If the pension is due to the widow of the pensioner, she shall have the right to combine her salary from her work or her pension with the pension due to her on behalf of her spouse.
The Department cited that the above-mentioned texts state: Entitlement to a retirement pension in two cases is conditioned by spending a certain period of service without requiring reaching a certain age, which is the case of termination of service by dismissal or termination by a disciplinary decision or by a judicial ruling, and the case of termination of service for other reasons.
The legislator also prohibited the combination between the pension and the salary for those whose services were terminated, with the exception of some cases, including the case if the total of the pension and salary received by the pensioner does not exceed nine thousand Dirhams. If that total exceeds such amount, the right shall be limited to what does not exceed such amount, and the case of the insured who has completed (25) years in service. However, this does not include the case of those whose services were terminated by a disciplinary decision of dismissal or termination, or by a judicial ruling, or those whose services were terminated for other reasons, then they shall be prohibited from combining the pension and salary, even if they have spent (25) years in service, and the text of Clause (2) of Article (36) shall be taken into account in their regard.
The Legislation Department concluded that by applying this to the question raised and the case of employees whose services were terminated in accordance with Clause (11) of Article (16) of the aforementioned law, and the case of termination of service was for restructuring purposes according to what is established in the papers, then despite the clarity of the legal texts, there is no room for jurisprudence or interpretation. The text of Clause (3) of Article (36) shall apply, and it shall be prohibited to combine pension and salary even if they have spent (25) years in service, taking into account the application of the provision contained in Clause (2) of the same Article.
The Legislation Department concluded that it shall not be permissible for an employee whose services were terminated in accordance with Clause (11) of Article (16) of Federal Law no. (7) of 1999 promulgating the Pensions and Social Security Law and its amendments, to combine the pension and the salary, in implementation of the provisions of Clause (3) of Article (36) of the aforementioned Law.

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