Dh427,337 awarded to ex-employee in Abu Dhabi labour case

Dubai: The Abu Dhabi Labour Court of First Instance has ordered a company to pay Dh427,337 to a former employee who served the firm for 16 years, covering end-of-service gratuity, notice pay and compensation for unused leave, court documents show.

The court ruled in favour of the employee on several claims but rejected his requests for two months of unpaid wages amounting to Dh70,904 and annual incentives worth Dh60,857, citing a lack of supporting evidence.

According to court records, the employee filed a lawsuit seeking unpaid wages for two months, compensation for unused leave, payment in lieu of notice, end-of-service benefits and commissions. He said he had been employed under an unlimited-term contract from April 2009 to April 2025, earning a basic monthly salary of Dh24,817 and a total monthly salary of Dh35,452. No representative appeared on behalf of the company during the proceedings, Emarat Al Youm reported.

In its reasoning, the court said the submitted documents confirmed that the employee had worked for the company for 16 years and four days under a valid employment relationship, entitling him to statutory benefits under UAE labour law.

However, the court rejected the claim for unpaid wages, stating that legally admissible claims must be specific, clear and supported by evidence. It noted that the employee had failed to identify the exact months for which wages were allegedly unpaid, making the claim too general to be upheld.

On the issue of unused leave, the court ruled in the employee’s favour, noting that workers are entitled to at least 30 days of paid annual leave for each year of service. As the company did not appear or provide proof that leave entitlements had been settled, the court ordered compensation to be calculated based on the employee’s basic salary.

The court also awarded the employee one month’s salary in lieu of notice, in line with the terms of his most recent employment contract.

Regarding end-of-service gratuity, the court said UAE labour law entitles full-time foreign workers who have completed at least one year of continuous service to such benefits. Gratuity is calculated at 21 days’ basic pay for each of the first five years of service and 30 days’ pay for each subsequent year. Based on the employee’s length of service and salary, the court approved this claim.

The court dismissed the claim for commissions, ruling that performance-based payments depend on contractual terms, internal company policies and employer evaluation. It added that previous commission payments do not automatically create an ongoing entitlement, particularly in the absence of contractual or documentary evidence.

The court calculated the employee’s final entitlements at Dh31,766 for unused leave, Dh35,452 in notice pay and Dh360,119 in end-of-service gratuity, bringing the total award to Dh427,337. It also ordered the company to pay legal fees and costs in proportion to the amount awarded.