Labour court rules employer failed to settle last salary and end-of-service gratuity

An Abu Dhabi labour court has ordered a company to pay Dh159,800 to an employee who worked for the firm for more than 11 years, covering his final month’s salary and end-of-service gratuity.
The ruling was issued by the Abu Dhabi Labour Court at first instance, after the employee filed a lawsuit seeking unpaid wages and his end-of-service entitlement following the termination of his employment.
According to court records, the employee joined the company in 2013 under an unlimited-term contract, with a total monthly salary of Dh29,000, including a basic salary of Dh16,000, Emarat Al Youm reported.
The plaintiff told the court that the company had failed to pay his final month’s salary and his end-of-service gratuity and requested that it be ordered to settle the outstanding amount along with court fees and expenses. A representative of the company did not attend the hearing despite being duly notified.
In its reasoning, the court cited the Civil Transactions Law, which obliges employers to pay agreed wages once an employee has performed or made himself available for work. The court also noted that a full-time foreign employee who has completed at least one year of continuous service is entitled to end-of-service gratuity, calculated on the basis of the basic salary.
The court found that the employee’s service began in September 2013 and ended following his resignation in December 2024. It concluded that the company had failed to pay his final month’s salary, entitling him to Dh29,000. The court further determined that his length of service amounted to 11 years, three months and 16 days, entitling him to an end-of-service gratuity of Dh130,800, calculated on his basic salary.
The court ruled in absentia that the company must pay the employee a total of Dh159,800, ordered immediate enforcement of the judgment without the need for a guarantee, and directed the company to bear the legal costs within the limits of the awarded amount.
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