The private company must pay Dh875,761 as unpaid wages, gratuity and leave benefits, the Abu Dhabi Court of Cassation has ruled while quashing its earlier decision that the worker had terminated employment on her own. It has been decided after a long and complex litigation path, going through the Court of First Instance, the Court of Appeal and the Court of Cassation, the highest court in Abu Dhabi, UAE.
In 2025, the employee complained to the Labor Commission that her job had been terminated without proper notice and that her employer was failing to pay her monthly salary of Dh97,866 (around $26,666). She pleaded for unpaid salaries, annual leave pay, notice payments, end of service compensation, contractual bonuses and compensation for what she alleged was “wrongful termination” while she was on probation.
The Court of First Instance initially granted Dh18,350 in damages in respect of the notice period only and a return air ticket, and dismissed all remaining claims. The Court of First Instance awarded damages for the notice period only, and a return air ticket, amounting to Dh18,350, and dismissed all subsequent claims. The employee opposed this finding and a higher court said that the case had to be heard by an independent expert, as they reversed the ruling altogether.
The court-appointed expert determined that nothing, such as letters, emails or official paperwork, existed to inform the employee that her job was terminated. Investigators also shared that the employee made numerous phone calls and emails to the company, even posting an article in a local newspaper, with no responses.
The expert in light of the available evidence, reached the conclusion that the employment relationship continued and the employee continued to work until she filed her lawsuit on November 25, 2025. Further investigation found that the company had only paid until the end of May 2025 and hence the employee had accrued Dh760,354 in unpaid wages for the balance of his employment. Besides, the expert determined Dh57,088 as end-of-service gratuity and Dh58,317 for the 29 days of remaining annual leave. The cost of a return ticket was estimated at Dh2,500.
But the court tossed out two claims for contractual bonuses because the employee failed to meet the criteria for the bonuses. Given the conclusions of the expert, the Court of Cassation rectified its decision and issued the judgment ruling that the employer was liable to pay a total amount of Dh875,761. The company also has to arrange a return flight for the employee to her own country or else pay the employee Dh2,500 for the return ticket – unless she has secured another employment arrangement in her country. Further, the employer was ordered to pay for the employee’s legal costs, namely Dh1,000, relating to legal costs in both litigation stages.
The decision underscores the necessity of the proper termination practices as set out in UAE employment laws. Employers that suspend the payment of wages without terminating the employment without ever reaching a formal end of an employment contract may be found liable for the payment of wages as well as statutory employment benefits until the contractual employment relationship is terminated properly.
