Employee Secures Dh50,930 in Overdue Wages, Also Receives Complimentary Airline Ticket in Abu Dhabi
Employee Wins Case Against Employer in Abu Dhabi Labour Court
In a significant ruling, the Abu Dhabi Labour Court has decided in favor of an employee in a case involving unpaid salaries, dismissal without proper notice, and employment-related claims. This case serves as a reminder of the UAE's commitment to protecting employee rights in various employment-related issues.
The employee, whose identity has not been disclosed, claimed that his employer failed to pay his salary from October 1, 2024, until the end of his employment on April 5, 2025. The employee also requested compensation for unfair dismissal, lack of notice, unused annual leave, and a return flight to his home country.
The employer, on the other hand, denied these claims and counterclaimed for Dh12,200, stating that the employee had collected payments for invoices but failed to hand over the money. However, the court did not find evidence to support this counterclaim.
After careful consideration of the evidence and testimonies presented, the court ruled in favor of the employee. The employer was ordered to pay the worker Dh50,930 for unpaid wages, Dh7,000 for lack of notice, Dh770 for unused leave, and Dh1,500 for a return travel ticket to his home country, as well as an experience certificate.
Interestingly, the court did not award the employee 12% interest on the unpaid amount, as it did not find evidence of unfair dismissal caused by a complaint or legal action. Each party was ordered to bear their own legal costs related to their claims.
This case is part of a series of employment-related cases in the UAE. Previously, an employee won Dh1.33 million in a salary-repayment case, while another won Dh336,000 in end-of-service compensation.
Common employment-related issues in Abu Dhabi often involve unpaid salaries, dismissal disputes, notice period compensation, annual leave entitlements, and travel expenses reimbursement. Courts have consistently ruled to protect employee rights in these matters under UAE labor law.
According to UAE law, employers must comply with the Wages Protection System (WPS), making cash payments illegal. Employers who fail to pay salaries on time face fines and legal action. For dismissal cases, courts award compensation for violations such as lack of proper notice.
Notice period compensation is a distinct entitlement in court rulings. Employers must provide adequate notice or pay compensation if terminating without notice, as per labor law. Annual leave is protected, and courts require full payment for unused leave if an employer cannot prove that leave was taken or paid.
On travel expenses, courts in Abu Dhabi have ordered employers to pay for return travel tickets for employees whose contracts end, especially when the employee is not joining a new employer. Additionally, courts may order employers to provide experience certificates to terminated employees as part of the settlement.
Compliance with Federal Decree Law No. 33 of 2021 and subsequent Ministry of Human Resources and Emiratisation (MoHRE) regulations is crucial for employers to avoid fines and legal disputes related to salary, leave, dismissal, notice periods, and travel expense claims. Courts typically rule in favor of employees where employers fail to fulfill their legal obligations in these areas.
This article was covered by Ajanta Paul, a Senior Editor on the Digital team, who specializes in breaking news, community issues, and high-pressure situations.
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References:
- UAE Labour Law: Salary Payment and Penalties
- Abu Dhabi Labour Law: Dismissal and Compensation
- UAE Labour Law: Wages Protection System
- Abu Dhabi Cassation Court Ruling on Unused Annual Leave
- UAE Labour Law: Annual Leave Entitlements and Scheduling
- The decision in favor of the employee reaffirms the importance of sportsmanship in business, as it sets a precedent for fair treatment in the UAE's sports-like labor arena.
- In the realm of travel, this case emphasizes the significance of return tickets being provided to employees upon termination, reflecting the hospitality sector's business prioritization.
- Interestingly, the finance sector can learn from this case, as the employer's counterclaim was rejected for lack of evidence - a lesson in the importance of substantiated claims in any business negotiation.
