Employee sues ex-employer for Dh120,000 over wording of termination letter

Abu Dhabi: A former employee has filed a case against his ex‑employer seeking Dh120,000 in compensation for alleged reputational and financial harm related to a termination letter, but an Abu Dhabi court has dismissed the lawsuit, ruling that it lacked a sound legal foundation.

The Abu Dhabi Family, Civil and Administrative Claims Court rejected the claim in its entirety, finding that the plaintiff had agreed to internal investigation procedures conducted by his employer and had not demonstrated that the company was legally at fault in a way that would entitle him to damages.

In his claim, the man said he had been wrongfully accused of “gross misconduct” and “serious violation of company policy” in a written termination letter. 

He argued that the letter had harmed his reputation and caused both financial and psychological harm. After lodging a grievance with the Ministry of Human Resources, the employer amended the termination letter to reflect that the dismissal was made at the employer’s sole discretion, a change the plaintiff said proved the original allegations were unfounded.

As evidence, the plaintiff submitted a copy of the original termination letter and documentation from the grievance filed with the Ministry, including an amicable settlement between the worker and the employer. 

The defendant, company representatives argued in court that the claim was without merit and should be dismissed, urging the judge to order the plaintiff to bear legal costs and fees.

In its judgement, the court noted that under the UAE Civil Transactions Law, any party that causes harm to another is generally obliged to compensate for that harm. However, the court said the plaintiff’s case rested on his claim that the termination letter amounted to wrongful conduct.

The judge observed that the original dismissal was later amended by mutual agreement following the Ministry’s involvement, but that the plaintiff had signed off on the internal investigation procedures carried out by the employer. The court also took account of the signed settlement agreement, concluding from these documents that the employer had not acted with such fault as to incur liability for tortious damages.

“As the claimant agreed to the procedures and a conciliatory settlement was documented,” the court wrote in its reasons, “there is no evidence of culpable conduct by the defendant that would give rise to compensable harm.”

On that basis, the court dismissed the lawsuit and ordered the plaintiff to pay the associated legal costs and expenses.