UAE: Employer Ordered To Pay Over Dh1.54 Million To Employee As Salary Repayment

2025-08-24 02:15:41

(MENAFN- Khaleej Times)

The Abu Dhabi Court of Cassation has ruled in favour of an employee, ordering a company he worked for under a three-year contract to pay him over Dh1.54 million.

The legal procedures started when the employee filed a labour lawsuit in Abu Dhabi against his employer, demanding unpaid salaries of about Dh1,595,000 and annual leave allowance of Dh130,000.

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In his claim, the employee said that he worked for the company under a contract dated 26/12/2022 with a basic salary of Dh55,000 and a total salary of Dh75,000 (basic salary + Dh20,000 allowances).

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The company denied what the claimant said, arguing that the contract he presented was forged and that the real salary was Dh54,000 only. It asked the court to dismiss the claim.

First ruling

The Court of First Instance appointed a financial expert to examine the documents presented by both parties. In his report, the expert stated that the employee was indeed owed payments.

In April, the court ordered the company to pay Dh1,412,537 in unpaid salaries plus Dh130,000 in leave allowances (Dh1,542,537 in total).

However, the employer appealed.

Appeal result

In June, the Court of Appeal rejected the appeal and upheld the first ruling. The company then filed a further challenge, raising four main arguments to support its claim:

The expert's report was invalid because the company was not given enough time to reply to new documents

The actual salary was Dh54,000, not Dh75,000, citing an email in which the employee allegedly admitted this

The employment contract was forged

The company's trade licence expired on 1/8/2023, meaning the employment relationship should have ended then

Cassation Court ruling

The Abu Dhabi Court of Cassation has dismissed the employer's appeal in full, replying to each argument presented by the company as follows:

On the expert's report : The court said the expert followed proper procedures, showing documents to both parties, and the company responded with a memorandum. So, invalidity is unjustifiable.

On the salary dispute: The court said the contract clearly states that the salary is Dh75,000 (Dh55,000 basic + Dh20,000 allowances). The written contract is stronger evidence than an email, and the company offered no proof otherwise. The court stated that:“A contract has the force of law between the parties”.

On the forgery claim: The company provided no concrete evidence of forgery, so the court dismissed it.

On the expired licence: The contract was valid for three years (until 31/1/2025). Neither party proved the relationship ended earlier, so the employment continued until contract expiry.

Based on these findings, the court rejected the company's appeal in full, ordering it to pay court fees, Dh1,000 in lawyer's fees. The deposit it had placed was also confiscated.

This means that the employee won the case at all stages, and the employer must pay over Dh1.54 million to the employee.

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