Dubai Court Dismisses Dh3 Million Compensation Claim Filed by Ex-employee

The Dubai Civil Court has rejected a Dh3 million compensation lawsuit filed by an Arab employee against his former company and its manager, ruling that the firm had acted within its legal rights when it reported him for alleged embezzlement.

Court documents show that the employee, who earned a monthly salary of Dh20,000, sought damages for material and moral harm, claiming the false accusation had caused him financial losses for nearly three years and damaged his reputation.

He was initially fined Dh10,000 and ordered by a lower court to repay Dh139,500, but was later acquitted on appeal of charges related to misappropriating Dh6.9 million.

The company defended its actions, stating that the complaint was based on financial irregularities uncovered during an audit. The court concluded there was no evidence of bad faith or malicious intent, ruling that the employer had not abused its right to litigation. Consequently, the employee’s compensation claim was dismissed.

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