Former employee sues company in UAE, wins Dh230,000 in unpaid wages

Abu Dhabi: The Labour Court of First Instance in Abu Dhabi has ordered a company to pay Dh228,666 in compensation to a former employee after failing to prove that it had paid his monthly wages for nearly 23 months.

According to court records, the employee filed a lawsuit against the company after first pursuing the matter through the Ministry of Human Resources and Emiratisation’s dispute resolution committee. He sought a ruling compelling the company to pay outstanding salaries covering a period of almost two years, amounting to the full sum awarded by the court, Al Khaleej Arabic daily reported.

In its reasoning, the court cited Article 22 of Federal Decree-Law No. 33 of 2021 on the regulation of labour relations, which stipulates that the amount or type of wage must be specified in the employment contract. If it is not specified, the competent court is empowered to determine it as part of a labour dispute.

The law further obliges employers to pay workers’ wages on time in accordance with the systems approved by the ministry and the conditions and procedures set out in the executive regulations. Salaries must be paid in UAE dirhams, unless another currency is agreed upon by both parties in the employment contract.

The court also referred to Article 16 of Cabinet Resolution No.1 of 2022, which requires employers to pay wages on their due dates as stipulated in employment contracts and in line with the ministry’s standards. All establishments registered with the ministry must pay salaries through the Wage Protection System or other approved mechanisms and provide proof of payment when requested.

The court concluded that the company had failed to submit sufficient evidence confirming that the employee’s wages had been paid and therefore ruled in his favour.