UAE court rejects employee’s Dh3 million lawsuit against former company

Case dismissed after judges find no grounds for compensation

Last updated:
1 MIN READ
181121 gavel
He said he had been wrongly accused of misappropriating company funds and was initially fined Dh10,000.
Supplied

Dubai: The Dubai Civil Court has dismissed a Dh3 million compensation lawsuit filed by an Arab employee against his former company and its manager, after he was acquitted of embezzlement charges involving Dh6.9 million, Emarat Al Youm reported.

According to court documents, the employee, who earned Dh20,000 a month, sued his former employer and its manager, claiming that the false accusation had caused him material and moral damages, including loss of income for nearly three years and harm to his reputation.

He said he had been wrongly accused of misappropriating company funds and was initially fined Dh10,000 and ordered to repay Dh139,500 by a lower criminal court before being acquitted on appeal.

The company argued that it acted within its legal right to report suspected financial irregularities discovered during an audit. The court found no evidence that the complaint had been malicious or filed in bad faith, ruling that the defendants had not abused their right to litigation. It therefore dismissed the employee’s compensation claim.