Court Orders Firm to Pay Dh20,800 to Employee After 27 Years of Service

The Abu Dhabi Labour Court has issued a preliminary ruling ordering a company to pay Dh20,800 to an employee who worked for it for more than 27 years, after his employment was terminated without payment of his outstanding statutory entitlements.

 

The employee took legal action against the company, seeking payment of unpaid employment-related dues, including end-of-service gratuity, annual leave allowance, compensation for wrongful dismissal and notice pay.

 

In his claim, the employee sought Dh75,000 in gratuity, Dh4,800 as annual leave allowance, Dh4,800 as compensation for wrongful dismissal and a further Dh4,800 in lieu of notice.

 

The employee told the court that he had joined the company in 1998 and continued working there until 2026, receiving a monthly salary of Dh4,800.

 

The court noted that, under the applicable labour law, an employee who completes at least one continuous year of service with an employer is entitled to an end-of-service gratuity when the employment relationship ends, subject to the conditions and calculation rules prescribed by law.

 

After reviewing the employee's length of service and the applicable legal provisions, the court determined that he had worked for the company for 27 years, nine months and 16 days.

 

The court further found that his end-of-service gratuity was subject to the statutory ceiling of 24 months' basic salary. Based on the applicable calculation, the employee was therefore awarded Dh19,200 as gratuity.

 

The court also awarded him Dh1,600 as compensation for unused annual leave, bringing the total amount ordered to be paid by the company to Dh20,800.

 

The ruling highlights the importance of employers settling employees' statutory entitlements when an employment relationship comes to an end, particularly in cases involving long-serving employees.

 

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