The Abu Dhabi Labour Court of First Instance has ordered a company to pay Dh90,750 to a former employee after failing to pay his wages for four consecutive months and withholding his salary in lieu of notice.
The employee had filed a lawsuit seeking approximately four months of unpaid wages amounting to Dh74,250, along with Dh16,500 as payment for the notice period.
He also asked the court to order the company to bear the legal costs and make the judgment immediately enforceable.
In its ruling, the court observed that the amount and type of remuneration must be specified in the employment contract. Where these details are not stipulated, the competent court is authorised to determine them, with the matter being treated as a labour dispute.
The court further noted that employers are required to pay employees' wages on their respective due dates, in accordance with the regulations approved by the Ministry and the terms, conditions and procedures prescribed under the executive regulations of the relevant decree-law.
It also clarified that wages must be paid in UAE dirhams, although the parties may agree to payment in another currency under the employment contract.
The court found that the employment contract stipulated a gross monthly salary of Dh16,500. Since the case records contained no evidence that the company had paid the agreed wages, it held that the employee was entitled to recover the outstanding amount claimed.
For enquiries or further information, contact ask@tlr.ae or call +971 52 644 3004. Follow The Law Reporters on WhatsApp Channels.