Court Orders Employer to Pay Dh434,884, Upholds Full Vacation Pay Rights

The Abu Dhabi Court of Cassation has ruled in favour of a former employee, ordering her employer to pay Dh434,884 and confirming her entitlement to full vacation pay for the entire duration of her service.

The employee worked from January 2018 to June 2024 with a basic salary of Dh36,000 and total pay of Dh60,000, including profit-sharing. Upon leaving the company, she filed claims for outstanding wages, vacation pay, notice pay, end-of-service gratuity, commissions, and late payment interest.

The Court of First Instance initially awarded Dh323,400, covering partial vacation pay and gratuity. On appeal, this was raised to Dh379,400. However, the employee challenged the ruling, arguing that vacation pay should cover her full six years of service, not just the last two.

The Court of Cassation upheld the expert’s findings on commissions but accepted the employee’s argument on vacation pay. Citing UAE Federal Labour Law No. 33 of 2021 and its executive regulations, the court confirmed that employees are entitled to payment for all unused leave days upon termination of employment.

Accordingly, the court amended the award to Dh434,884, ordering the employer to also bear court fees and Dh1,000 for the employee’s legal costs.

The ruling reinforces the strong legal protections for employees in the UAE, ensuring that vacation pay reflects the entire span of employment.

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