UAE: Company Ordered To Pay Over Dh96,000 After Failing To Deposit Dh500 In Court Fees

A company's failure to deposit Dh500 proved costly after a labour court in Abu Dhabi rejected its request to revisit an earlier ruling due to unpaid court fees.

The case started when an employee filed a case against an establishment he used to work with, asking for outstanding dues of Dh99,250.

His step came after unsuccessful attempts to reach an amicable settlement with the company. In his claim, the employee argued that he worked under a fixed-term contract since May 21, 2021, with a basic salary of Dh10,000 (Dh20,000 in total) and asked for the following:

• Unpaid wages from December 1, 2024, to February 21, 2025 (Dh54,000)

• Compensation for unused leaves for the last two years (Dh19,000)

• End of service gratuity (Dh26,250)

Stay up to date with the latest news. Follow KT on WhatsApp Channels.

The employee also argued that he submitted his resignation on January 21, 2025 due to non-payment of his wages and that he served the notice period until his last working day on February 21, 2025.

Court of First Instance ruling

On April 17, the Court of First Instance partly ruled in favour of the employee, ordering the company to pay him Dh96,333. During the session, the employee attended but no representatives from the employer's side showed up.

The employer appealed against that ruling, arguing that the initial lawsuit notification was sent to the wrong phone number, preventing the company from attending hearings.

The company also said that its relationship with the employee's contract was an investment/management agreement, not a labour contract, with a base salary of Dh4,000 plus 50% of profits.

In its claim, it accused the employee of altering the contract terms to increase his salary.

Before the Court of Appeals

During appeal proceedings, all evidence were reviewed, including a report provided by the telecommunications provider du to verify the notification number.

The court found that the appeal was submitted after the legal deadline (30 days); therefore it dismissed the appeal and upheld the original judgment.

Reconsideration plea

The company tried to apply for reconsideration of the Appeals Court ruling, but its request was rejected for failing to pay a security deposit of Dh500.

The court clarified that procedural rules under Articles 171–173 of the Civil Procedure Law were not properly met by the employer.

This is as stated in paragraph (4) of Article (173) of Federal Decree-Law No. (42) Issuing the Civil Procedure Law, which provides that: An appeal shall not be accepted if the petition is not accompanied by a deposit of a security amounting to Dh500.

Rejecting the plea means that the employer must abide by the original ruling and pay Dh96,333 to the employee, plus all court costs and legal fees.

The case highlights the importance of adhering to procedural requirements in legal cases, including timely submissions and payment of mandatory court deposits.

MENAFN05092025000049011007ID1110024551