UAE: Can your employer claim compensation without evidence?

Question: I worked as a sales manager in a company for three years. Two months ago, the company terminated my employment and filed a complaint against me, claiming that I breached the contract by contacting other customers and providing them with company work, which allegedly affected the company’s competitiveness and reduced its revenue. Is the company entitled to compensation, noting that there is no evidence against me?

Answer: According to Article 44(5) of the Labour Law, an employer has the right to terminate a worker if the latter discloses a work secret related to industrial or intellectual property, resulting in losses to the employer, missed opportunities, or personal benefit to the worker.

In accordance with the first paragraph of Article 1 of the Law of Evidence in Civil and Commercial Transactions, Federal Decree-Law No. 35 of 2022, the claimant is obligated to provide evidence supporting their claims, and the defendant has the right to deny them.

Such matters are decided by the court based on the evidence presented, taking into consideration that a worker’s failure to fulfil contractual obligations by disclosing company secrets constitutes a contractual liability. This liability arises only if three conditions are met: error, damage, and a causal link between them. If any one of these conditions is absent, the liability does not exist, and the case will be dismissed.

Based on the above, if the employer can prove that you disclosed confidential information to other customers and demonstrate the damages suffered as a result, they are entitled to compensation. Otherwise, they are not.