Abu Dhabi court orders company to pay ex-employee Dh225,000 in unpaid wages, gratuity

Abu Dhabi: A labour court in Abu Dhabi has ordered a company to pay a former employee Dh225,483 after withholding several months of wages and failing to grant him his 17 years’ end-of-service gratuity. The ruling came after the employee filed a lawsuit demanding overdue salaries totalling Dh135,000 and end-of-service benefits worth Dh93,000. He also sought court fees and expenses. 

The court found that under the Wage Protection System records, the employee had not received his salary for multiple consecutive months. It ruled that the burden of proof to show payment rested with the company, which failed to present evidence of settlement. Based on his contract, with a total monthly salary of Dh7,500, the employee was awarded Dh132,750 in overdue wages.

The court also noted that the man’s tenure amounted to nearly 17 years, with a basic salary of Dh6,000, entitling him to Dh92,733 in gratuity payments. In response, the company filed a counterclaim, demanding Dh27,500 from the employee. It argued he had resigned without serving the contractual one-month notice period, thus owing compensation equivalent to his monthly wage.

The firm further alleged that he had received more pay than he was entitled to, citing findings from a labour disputes committee that listed him among workers claiming seven months of unpaid wages.

The court upheld the counterclaim in part, ruling that the employee must return Dh27,500 to the company, representing excess salary payments. Ultimately, the court balanced both claims, leaving the employee with a net entitlement of Dh225,483.