An Abu Dhabi labour court has directed a company to settle outstanding dues amounting to AED159,800 in favour of a former employee, following a dispute over unpaid salary and end-of-service benefits.
The case, reported by Gulf News, was heard at the Abu Dhabi Labour Court of First Instance after the employee filed a claim against his former employer, alleging that key financial entitlements remained unpaid after his departure from the company.
Court documents showed that the employee began working for the firm in 2013 under an unlimited-term employment contract. His total monthly compensation was set at AED29,000, of which AED16,000 constituted his basic salary, according to details published by Emarat Al Youm.
In his submission to the court, the employee stated that despite the end of his employment, the company had not released his final month’s salary nor his end-of-service gratuity. He asked the court to compel the employer to pay the outstanding amounts, in addition to covering legal fees and related expenses. Records indicated that the company’s representative did not attend the hearing, even though formal notice had been issued.
While evaluating the claim, the court referred to provisions of the Civil Transactions Law, which require employers to pay agreed wages once an employee has carried out work or placed himself at the employer’s disposal. The court also reiterated that foreign employees working on a full-time basis are entitled to end-of-service gratuity after completing at least one year of continuous service, with the calculation based on the basic salary.
The court established that the employee’s service commenced in September 2013 and concluded with his resignation in December 2024. Based on this timeline, the court determined that the employer had failed to pay the final month’s salary of AED29,000. It also assessed the employee’s total length of service at 11 years, three months, and 16 days, resulting in a gratuity entitlement of AED130,800, computed using the basic salary.
In its decision issued in absentia, the court ordered the company to pay the full amount of AED159,800, allowed immediate enforcement of the ruling without requiring a financial guarantee, and instructed the employer to shoulder the legal costs within the limits of the awarded sum.
