In a significant legal ruling, the Abu Dhabi Labor Court has mandated a company to pay a total of 159,800 AED to an employee who served for over 11 years. This decision underscores the importance of contractual obligations and employee rights in the workplace, particularly in relation to wages and end-of-service benefits.
Details of the Case
The dispute arose when an employee filed a lawsuit against his employer, seeking the payment of 159,800 AED, which included his pending salaries and end-of-service gratuity. He highlighted that he had joined the company in 2013 under an indefinite contract with a total salary of 29,000 AED, of which 16,000 AED was the basic salary. Notably, the company did not send a representative to defend its position during the court proceedings.
Court’s Findings
The court carefully evaluated the case and referred to the established provisions of civil transaction law. It emphasized, “The employer must pay the agreed wage to the worker whenever he performs his duties or prepares himself for work, even if no tasks are assigned.” Additionally, the court noted that foreign workers who have completed one year or more in continuous service are entitled to end-of-service benefits upon termination of employment, calculated based on their basic salary.
Compensation Awarded
Documentation presented in court confirmed that the employee had commenced his employment in September 2013 with an indefinite contract stipulating a total salary of 29,000 AED. The evidence also included his resignation submitted in December 2024. The court concluded that the employer had failed to pay his last month’s salary, thereby entitling him to an amount of 29,000 AED. Considering the duration of service—11 years, three months, and 16 days—the end-of-service gratuity calculated based on the basic salary totaled 130,800 AED.
Final Ruling
Ultimately, the court ruled that the company must pay the employee the full amount of 159,800 AED, enforcing the judgment with immediate effect, without the need for a guarantee. Furthermore, the company was ordered to cover the associated legal costs up to the total awarded amount.