Abu Dhabi, January 07, 2026: In a ruling more and more being cited by employees and authorized consultants throughout the UAE, an Abu Dhabi Labour Courtroom has ordered a personal firm to pay Dh159,800 (roughly $43,540) to a long-serving worker for unpaid wage and end-of-service advantages. This choice highlights rising consciousness of employees’ rights and the enforcement of labour protections within the Emirates. The case, which unfolded within the Abu Dhabi Labour Courtroom at first occasion, centered on an worker who had labored with the identical firm for greater than 11 years, solely to seek out himself battling in court docket after the employer didn’t settle his closing wage and legally mandated gratuity after his resignation in December 2024.
UAE work tenure and authorized declare
In line with court docket data, the plaintiff was employed below an unlimited-term contract starting in September 2013 and was incomes a month-to-month wage package deal value Dh29,000 (approx $7,900), together with a fundamental wage part of Dh16,000 (approx $4,360). When his employment ended late final yr, the corporate didn’t pay his closing month’s wage and didn’t present the end-of-service gratuity to which he was statutorily entitled. Below UAE Labour Legislation (Federal Decree-Legislation No. 33 of 2021), staff who full no less than one steady yr of service are entitled to end-of-service advantages, a type of severance pay calculated on the premise of fundamental wage, along with any wages owed on the time of departure. The legislation additionally requires employers to settle all entitlements as soon as an employment relationship has ended. In its ruling, the court docket discovered that the worker had certainly carried out his duties and made himself accessible for work by means of the tip of his contract, which means his closing wage of Dh29,000 (approx $7,900) was legally due. The court docket additionally decided that his size of service, over 11 years, entitled him to a gratuity of Dh130,800 (approx $35,640), based mostly on his fundamental month-to-month wage.
UAE court docket finds Abu Dhabi employer in default
The defendant firm didn’t attend the listening to regardless of being notified, main the court docket to problem its verdict in absentia. The choose ordered the employer to pay the overall quantity of Dh159,800 (approx $43,540) instantly, with out requiring the worker to submit a assure, an indication of the court docket’s agency backing for statutory labour protections. The corporate was additionally directed to bear authorized prices as much as the awarded sum.
UAE Courtroom Enforces Labour Legislation, Awards Lengthy-Serving Worker $43,500
Authorized consultants word that rulings comparable to this one are a part of a sample during which UAE courts are more and more imposing worker rights with readability and consistency. Comparable choices lately have included awards of Dh195,000 (approx $53,100) to long-serving employees for unpaid wages, gratuity and unused go away, in addition to Dh89,620 ($24,420) in dues for commissions and go away pay to a different former worker.
Why this issues to UAE employees
For labour advocates and employees within the UAE, significantly expatriates who make up a good portion of the private-sector workforce, the Abu Dhabi court docket’s choice sends a robust message: employment contracts and statutory entitlements are enforceable and the judiciary will uphold employees’ rights when employers fail to satisfy their obligations. In one other noteworthy instance, an worker in Abu Dhabi was awarded Dh110,400 (approx $30,080) in June 2025 for unpaid wages though he by no means formally began work as a consequence of employer delay, a ruling that emphasised employers’ obligations as soon as a contract is signed.In the meantime, situations proceed the place courts have intervened to make sure salaries, gratuities and go away are paid. In Sharjah’s Khor Fakkan area, a personal clinic was fined and ordered to pay Dh48,559 (approx $13,230) after withholding wages for almost a yr, reinforcing the authorized expectation that employers can not indefinitely delay wage funds. These rulings underscore the power of UAE labour legislation, which mandates that wage funds, gratuity and different entitlements can’t be waived by staff nor arbitrarily withheld by employers. The mantra “no wage with out work carried out or availability for work” has repeatedly been upheld by courts when contractual or authorized obligations are clear.
Labour disputes and the UAE authorized framework
On the core of the UAE’s employment legal guidelines, ruled by the UAE Labour Legislation and Civil Transactions Legislation, is the safety of employees’ rights whereas balancing employers’ pursuits. The laws explicitly provides staff the fitting to file grievances in labour courts when dues will not be paid, when contracts are breached, or when termination lacks authorized justification. Labour courts throughout the Emirates together with in Abu Dhabi and Dubai, function first-instance venues to listen to disputes associated to wages, gratuities, end-of-service advantages, go away pay and commissions. Judges usually evaluation employment contracts, wage data and statutory provisions to find out whether or not rights have been infringed.
Unpaid Wage? This UAE Labour Courtroom Ruling Is a Wake-Up Name for Employers
Usually, instances just like the Dh159,800 ruling hinge on clear documentation comparable to employment contracts, payslips, resignation letters and HR correspondence. Employers who fail to provide proof demonstrating that they’ve met their authorized obligations typically lose by default, as occurred on this latest case when the employer didn’t attend the listening to.
UAE skilled views on enforcement and compliance
Authorized practitioners say that these choices are essential not just for the people concerned but in addition for setting precedents that inform employer behaviour. When courts implement these legal guidelines persistently, it encourages compliance amongst companies. Employers study that in the event that they fail to pay wages or statutory gratuity, the courts can and can implement fee with authorized prices hooked up.Specialists additionally spotlight how authorized readability advantages the broader economic system. When employees really feel protected, it fosters belief within the labour market and helps appeal to world expertise. Employers, in flip, are inspired to keep up correct data and observe regulatory frameworks, contributing to a extra clear and steady enterprise setting.
A broader sample of employee wins within the UAE
This latest case is a part of a broader development of worker-favoured rulings within the UAE’s labour courts. For instance, final yr one other Abu Dhabi court docket ordered an organization to pay a employee Dh195,000 (approx $53,100) after failing to settle over 25 years of unpaid wages, gratuity and go away compensation. Equally, courts have dominated in favour of staff denied go away pay or unpaid commissions, with awards reflecting each wage dues and extra dues comparable to unused advantages. In some instances, as highlighted by authorized observers, courts have even clarified the character of entitlements comparable to when staff are awarded fee for years of unused annual go away based mostly on statutory provisions quite than employer data, reinforcing the broad safety afforded to employees.
What staff within the UAE ought to know
For workers going through unpaid dues, authorized consultants advocate:
The latest ruling serves as a reminder that the UAE’s authorized system can ship truthful and enforceable outcomes for employees, offered statutory protections are understood and invoked correctly.
Trying ahead
As labour disputes proceed to seek out their approach into UAE courts, choices just like the Dh159,800 award reinforce that authorized rights for workers will not be merely theoretical. They’re actionable, backed by enforceable legal guidelines, and upheld even when employers fail to reply or seem in court docket. For expatriates and locals alike, realizing one’s rights and that the judiciary stands able to implement them, may make all of the distinction when employment relationships finish.
