Dubai Court dismisses Dh5 million claim by ex-employees over false fraud allegations

Dubai: Two former employees of a Dubai company, one of them a woman, have sought Dh5 million in compensation from their former employer, its director and a colleague, alleging that a false complaint of embezzlement and forgery upended their lives and left them banned from travel for nearly two years.

The employees, who were acquitted last year of all criminal charges, argued that the company’s allegations, and the testimony of a staff member they accused of lying under oath, derailed their professional and personal lives, forcing them into prolonged litigation, financial hardship and public humiliation. But in a recent ruling, the Dubai Civil Court dismissed their compensation case, saying the defendants had not abused their legal right to file a complaint.

According to the female plaintiff, the dispute began when she resigned from the firm in May 2022, citing persistent harassment by the company’s director. She claimed he pressured her into a romantic relationship and sought to coerce her to remain both in her job and in the relationship. 

When she refused, she alleged, he retaliated by filing a police complaint accusing her and a male colleague of embezzling Dh513,581 through forged invoices and falsified records.

The director, she said, enlisted another employee to provide testimony supporting the charges. The case triggered a travel ban against both defendants, leaving them unable to pursue new employment opportunities, attend family funerals abroad, or secure income to support themselves.

The case moved through the criminal system, where Dubai’s misdemeanors court appointed independent accounting and technical experts to assess the company’s claims. 

The experts concluded that the invoices in question were preliminary documents and that the two employees had not received any illicit funds. They further determined that an email cited as evidence of forgery had itself been falsified.

In September 2024, the court cleared both employees of all charges, citing a lack of credible evidence. The acquittal was not appealed, making the ruling final.

Despite the acquittal, the employees said they were left with heavy losses. Legal fees, translation costs, expert reports and transportation to court hearings drained their finances. The woman reported losing Dh57,000 in commissions, while her colleague said he missed out on Dh11,420. Both said the travel ban lasting more than 20 months denied them career opportunities and inflicted severe emotional and reputational damage.

They filed a civil case demanding Dh5 million in compensation for material, moral and psychological harm, with interest and legal costs.

The Dubai Civil Court, however, rejected the claim. Judges ruled that the company and its representatives had acted within their legal rights in bringing the original complaint, even if it ultimately proved unfounded.