UAE: Court rules in favor of worker, awards AED 1.54 million in unpaid salaries

The Abu Dhabi Court of Cassation has upheld a ruling in favor of an employee, rejecting an appeal by his former employer and ordering the company to pay more than Dh1.54 million in unpaid salaries and benefits.

According to a report by Khaleej Times, the legal battle began when the employee filed a case claiming Dh1.595 million in unpaid wages and Dh130,000 in annual leave allowance under a three-year contract signed in December 2022. His salary package was stated as Dh75,000 a month — Dh55,000 basic pay plus Dh20,000 in allowances.

The employer contested the claim, alleging that the contract was forged and insisting that the real monthly salary was Dh54,000. The company also argued that its expired trade license automatically ended the employment relationship.

A financial expert assigned to the case confirmed that the employee was owed payments, leading the Court of First Instance in April to rule in his favor, awarding him Dh1,412,537 in salaries plus Dh130,000 in allowances. The Court of Appeal later upheld this decision.

Unmoved, the company escalated the matter to the Court of Cassation, presenting four main arguments. However, the higher court dismissed them all, stating that the expert’s procedures were valid, the written contract outweighed an alleged email, the forgery claim lacked evidence, and the expired license did not terminate the binding three-year contract.

The final ruling not only reaffirmed the employee’s victory but also ordered the company to cover court fees, pay Dh1,000 in lawyer’s fees, and forfeit its deposit.