UAE firm told to settle AED63,500 after failing to pay employee salaries, court rules

A labour dispute in Al Ain has ended with a court ruling that held a private company financially liable for failing to pay wages and formalise an employment relationship, according to a report by Gulf Today.

The Al Ain Civil, Commercial and Administrative Cases Court directed the company to pay a total of AED58,500 in unpaid salaries to a former employee, along with AED5,000 in compensation for damages resulting from delayed payments and procedural violations.

Court records show that the case was initiated by a female employee who sought judicial intervention after attempts at reconciliation failed. She asked the court to compel her employer to release her accumulated salaries amounting to AED58,500 and to award additional compensation of at least AED12,500, aside from legal costs and attorney’s fees.

In her filing, the employee stated that she had been offered a department head role with a monthly salary of AED9,000. Despite receiving an appointment notification, she said the company did not complete the required labour contract procedures and did not pay her any salary during the period she worked.

To assess the claim, the court appointed an expert, who confirmed that the employee had performed work for the company based on an agreed monthly salary of AED9,000. The expert report also noted that the employee formally resigned through a WhatsApp message sent to the company, in which she apologised for being unable to continue in her role. The expert calculated the total unpaid amount at AED58,500.

When the court reviewed the request for compensation related to delayed salaries and the absence of a formal employment contract, it noted that the company’s legal representative failed to appear in court despite being duly notified. On that basis, the court upheld the employee’s entitlement to her claimed dues and issued the payment order accordingly.