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UAE Court Orders Employer to Pay Over Dh1.54 Million to Employee in Salary Dispute

The Abu Dhabi Court of Cassation has ruled in favour of an employee, ordering his former employer to pay more than Dh1.54 million in unpaid salaries and leave allowances. The case highlights the legal weight of a written employment contract over other forms of evidence.

The dispute began when the employee filed a labour lawsuit in Abu Dhabi, claiming unpaid salaries of approximately Dh1,595,000 along with an annual leave allowance of Dh130,000. He stated that he worked under a three-year contract dated 26 December 2022, which specified a basic salary of Dh55,000 plus Dh20,000 in allowances, bringing the total monthly salary to Dh75,000.

The employer contested the claim, arguing that the contract was forged and that the employee’s actual salary was only Dh54,000, citing an email allegedly confirming this. The company requested the court to dismiss the case.

Initial Court Rulings

The Court of First Instance appointed a financial expert to examine the documents submitted by both parties. The expert confirmed that the employee was owed the claimed payments. In April, the court ordered the company to pay Dh1,412,537 in unpaid salaries and Dh130,000 in leave allowances, totaling Dh1,542,537.

The employer appealed the decision, but in June, the Court of Appeal upheld the original ruling.

Employer’s Further Appeal and Arguments

The company subsequently filed a challenge with the Court of Cassation, raising four main points:

The expert’s report was allegedly invalid because the company had insufficient time to respond to new documents.
The employee’s salary was Dh54,000, based on an email.
The employment contract was allegedly forged.
The company’s trade licence expired on 1 August 2023, supposedly ending the employment relationship.

Cassation Court Decision

The Court of Cassation dismissed all of the employer’s arguments:

Expert report validity: The court confirmed that the expert followed proper procedures, sharing documents with both parties, and the company submitted a memorandum in response. The report was therefore valid.
Salary dispute: The court emphasised that the written contract clearly stipulated a total salary of Dh75,000. A written contract carries more legal weight than an email, and the employer provided no evidence to refute this.
Forgery claim: No concrete proof of forgery was presented, so the claim was rejected.
Expired trade licence: The employment contract was valid until 31 January 2026. Without evidence showing an early termination, the employment was considered ongoing until contract expiry.

Based on these findings, the court rejected the employer’s appeal in full, ordered it to pay court fees, Dh1,000 in legal costs, and confiscated the deposit placed by the company.

Outcome

The employee emerged victorious at every stage of the legal proceedings. The employer must now pay over Dh1.54 million, reinforcing the importance of written contracts in employment disputes in the UAE.

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