Court Rejects Golden Visa Holder’s Dh100,000 Compensation Claim Against Former Employer

An Abu Dhabi court has dismissed a Dh100,000 compensation claim filed by a UAE Golden Visa holder against his former employer, ruling that the employee failed to prove the company had agreed to issue him a new employment contract after he obtained his long-term residency.

The employee had argued that he entered into a two-year employment contract with the company on July 11, 2024. After securing a UAE Golden Visa in August 2025, his existing employment contract, residency visa and work permit were cancelled as part of the residency conversion process. He claimed both parties had agreed that a new employment contract and work permit would be issued once the Golden Visa formalities were completed.

However, when he later applied for benefits under the UAE's Involuntary Loss of Employment (ILOE) insurance scheme, he was informed that his employment had officially ended on August 11, 2025, and that no replacement employment contract had been registered. As more than one month had elapsed since the recorded termination date, his insurance claim was rejected under the scheme's eligibility rules.

The employee contended that the company had unlawfully terminated his employment, causing him to lose access to ILOE insurance benefits and miss a job opportunity in Saudi Arabia that would have paid a monthly salary of Dh45,975.

He alleged that the employer had failed to honour the original two-year employment agreement and had terminated his services without a valid reason, leaving him unemployed. On that basis, he sought Dh100,000 in compensation for the financial losses he claimed to have suffered.

The employer denied any wrongdoing, maintaining that the termination complied with UAE labour laws. The company told the court that the employee had received written notice and completed the required notice period before his employment ended.

It also argued that the employee had produced no evidence to substantiate either his alleged financial losses or his claim that he had lost a job opportunity in Saudi Arabia.

Court's Findings

In its judgment, the Abu Dhabi Family, Civil and Administrative Claims Court dismissed the claim, holding that the employee had failed to establish that the employer committed any wrongful act.

The court noted that although the employee alleged the company had agreed to issue a new employment contract following the grant of his Golden Visa, he produced no evidence to prove such an agreement or demonstrate that the employer was legally obliged to do so.

The judge also observed that, according to the employee's own account, the cancellation of his previous employment contract and work permit had been carried out by mutual agreement to facilitate the Golden Visa process. As a result, the court found that the cancellation itself could not be regarded as evidence of misconduct by the employer.

The court further held that the employee failed to provide sufficient evidence to support his claims of financial loss, including the alleged missed employment opportunity in Saudi Arabia. It also found no proof that the employer was responsible for the rejection of his ILOE insurance claim.

Accordingly, the court dismissed the Dh100,000 compensation claim and ordered the employee to bear the court costs.

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