Abu Dhabi Court Orders Firm to Pay Dh384,301 in Unpaid Wages, Gratuity

The Abu Dhabi Labour Court of First Instance has ordered a company to pay Dh384,301 to a former employee after it withheld his end-of-service gratuity and delayed payment of his wages for several months.

 

The employee had filed a lawsuit demanding Dh252,000 in back wages, Dh186,544 in end-of-service gratuity for nearly 12 years of service, along with fees and legal expenses. He stated that he joined the company in 2012 under an open-ended contract with a total salary of Dh26,250, including a basic salary of Dh12,800, and that his employment ended last year.

 

The court referred to Article 912/1 of the Civil Transactions Law, which stipulates that employers are legally obliged to pay workers their agreed wages once the work is performed. In the absence of proof of payment, the court has the authority to determine and enforce wage payments. Employers must also ensure wages are paid in UAE dirhams or in another currency if mutually agreed in the employment contract.

 

Since the company failed to pay the outstanding wages, the employee was awarded Dh252,000 in back pay.

 

The court also cited Article 51 of Federal Decree-Law No. 33 of 2021, which grants full-time foreign employees who complete at least one year of continuous service the right to end-of-service benefits based on their basic wage: 21 days’ wage for each year of the first five years and 30 days’ wage for every subsequent year. Benefits for partial years are calculated proportionally, provided the employee completed at least one full year of service. The total gratuity cannot exceed two years’ basic wage.

 

As the employee had served 11 years, 10 months and one day, the court calculated his gratuity entitlement at Dh132,301, based on his last drawn basic salary of Dh12,800.

 

For any enquiries please fill out this form, or contact info@thelawreporters.com and  Follow  The Law Reporters on WhatsApp Channels