Court Orders Ex-Employee to Repay Dh370,000, Confirms Legal Force of Digital Acknowledgments

The Abu Dhabi Family and Civil Court has ruled that a former employee must repay Dh370,171 to his former employer, a private joint-stock company, after he was found to have misappropriated company funds. The judgment, which was reported by Al Khaleej Arabic daily, not only orders repayment but also underscores the growing legal recognition of electronic communications as binding evidence in civil disputes across the UAE.

 

The dispute originated after the company discovered financial irregularities involving the employee, who was serving under an open-ended employment contract. According to case documents, the individual was found to have submitted false information and siphoned off company funds during his tenure.

 

The company pursued legal action, filing a civil lawsuit supported by extensive documentation. In its petition, the company submitted invoices, records, and email correspondence, which together illustrated the extent of the alleged misappropriation.

 

Crucially, the court noted that the employee had acknowledged his liability in an email to the company. In the message, he admitted to owing the money and expressed willingness to repay the amount in installments.

 

Court’s Findings

In its ruling, the Abu Dhabi Family and Civil Court affirmed that the email constituted valid proof of debt. The court stressed that written acknowledgment through electronic communication carries the same legal weight as a physically signed document.

 

“The acknowledgment of debt via electronic communication is legally binding and serves as full evidence against the sender,” the judgment read.

 

Despite this acknowledgment, the employee neither appeared in court nor produced evidence of repayment or exemption. Given the absence of any mitigating factors, the court concluded that he was obliged to repay the full amount misappropriated, in addition to any applicable legal interest and associated court fees.

 

Importance of Electronic Evidence

The ruling is significant because it highlights the UAE judiciary’s increasing reliance on digital correspondence in civil and commercial disputes. With email and other electronic communication tools being widely used in business and employment relationships, the courts have increasingly recognised them as enforceable instruments.

 

Under UAE law, particularly the Federal Decree-Law No. 46 of 2021 on Electronic Transactions and Trust Services, electronic records, contracts, and signatures are accorded full legal validity, provided they meet authenticity and integrity requirements. This framework ensures that admissions, promises, or contracts exchanged through digital means can hold individuals and entities accountable.

 

By affirming that an email acknowledgment is sufficient to establish liability, the Abu Dhabi court has reinforced this legal position, providing clarity to companies and employees alike about the risks of casual or informal admissions made through electronic channels.

 

Broader Implications

The case sends a strong message to employees about accountability in handling company funds. Misappropriation of corporate resources constitutes both a civil wrong and, in certain circumstances, a criminal offense under UAE Penal Code provisions related to breach of trust and embezzlement.

 

For employers, the ruling offers reassurance that even in cases where a physical acknowledgment is lacking, electronic correspondence can provide sufficient grounds to pursue recovery of misappropriated funds. It also underscores the importance of maintaining robust documentation and archiving systems that preserve electronic communications for potential litigation.

 

Commenting on the ruling, Sunil Ambalavelil, Chairman of Kaden Boriss, said such judgments serve as a strong deterrent against financial misconduct. “Employees must recognise that digital acknowledgments—whether made through emails or other electronic platforms --carry full legal force in the UAE,” he noted. “Equally, companies should leverage technology to properly document financial transactions, as this case underscores the evidentiary strength of electronic records in securing favourable court decisions.”

 

Reinforcing Corporate Governance

The decision also ties into wider efforts across the UAE to promote corporate governance, transparency, and accountability. The authorities have consistently stressed that misuse of funds, fraud, and misrepresentation will be dealt with firmly, whether in family-owned businesses, public companies, or private joint-stock firms.

 

For businesses, the ruling reinforces the need for preventive mechanisms, such as internal audits, compliance monitoring, and employee training, to mitigate risks of financial misconduct. When misappropriation does occur, swift legal action backed by documented evidence—digital or otherwise -- remains the most effective recourse.

 

The Abu Dhabi court’s decision not only compels a former employee to repay Dh370,171 misappropriated from his company but also sets a precedent in affirming the enforceability of electronic acknowledgments of debt. By granting emails the same weight as signed documents, the ruling strengthens the role of digital evidence in civil litigation and highlights the responsibility of individuals to uphold their professional and financial obligations.

 

As businesses increasingly rely on electronic communication, this case serves as a clear reminder: what is written and acknowledged digitally can and will stand up in court.

 

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