In a significant ruling that underscores the robust enforcement of worker protections in the Emirates, an Abu Dhabi Labour Court has directed a private company to pay a hefty sum of Dh159,800 (approximately $43,540) to a long-serving employee. The compensation is for unpaid final salary and legally mandated end-of-service benefits, sending a clear message to employers across the UAE.
Details of the Landmark Labour Case
The case, adjudicated in the Abu Dhabi Labour Court at first instance, involved an employee who had dedicated over 11 years of service to the same company. According to court documents, the plaintiff began his employment under an unlimited-term contract in September 2013. His monthly salary package was Dh29,000 (around $7,900), which included a basic salary component of Dh16,000.
Despite his long tenure, the employee found himself in a legal battle after resigning in December 2024. His former employer failed to settle his final month's wages and did not provide the end-of-service gratuity he was entitled to under UAE law. The court found that the employee had performed his duties and was available for work until the end of his contract, making his final salary legally due.
Court's Calculation and Firm Stance
Applying the provisions of the UAE Labour Law (Federal Decree-Law No. 33 of 2021), the court calculated the employee's entitlements. It awarded him his final salary of Dh29,000. For his gratuity, based on his basic wage and over 11 years of continuous service, the court determined an amount of Dh130,800 (approx $35,640), bringing the total award to Dh159,800.
The ruling was delivered in absentia as the defendant company failed to attend the hearing despite proper notification. The judge ordered the immediate payment of the full amount without requiring the employee to post a guarantee, demonstrating the court's firm backing for statutory protections. The company was also directed to bear all legal costs.
A Growing Trend of Worker-Favoured Rulings
This decision is not an isolated incident but part of a broader pattern where UAE courts are consistently upholding employee rights. Legal experts point to similar verdicts in recent years, including one where a worker was awarded Dh195,000 (approx $53,100) for unpaid wages, gratuity, and unused leave after 25 years of service. In another instance, an Abu Dhabi employee received Dh110,400 in June 2025 for unpaid wages even though he never officially started work due to employer delays.
These rulings reinforce the strength of the UAE's legal framework, which mandates that wage payments and gratuity cannot be waived by employees nor arbitrarily withheld by employers. The principle of "no wage without work performed or availability for work" has been repeatedly upheld by the judiciary.
What This Means for Employees and Employers
For the UAE's vast expatriate workforce and local employees, this ruling is a powerful reminder that employment contracts and statutory entitlements are enforceable. The judiciary stands ready to intervene when employers fail to meet their obligations. Labour courts in Abu Dhabi, Dubai, and across the Emirates serve as accessible venues for disputes related to wages, gratuities, and other benefits.
Legal practitioners emphasize that such consistent enforcement encourages broader compliance among businesses and fosters trust in the labour market. It signals to employers the importance of maintaining accurate records and settling dues promptly to avoid legal penalties and costs.
Key Takeaways for Workers:
- Always keep accurate copies of your employment contract, payslips, and all HR correspondence.
- File grievances promptly through the Ministry of Human Resources and Emiratisation (MoHRE) or directly in labour court if dues are unpaid.
- Seek legal counsel early, especially for claims involving significant back pay or gratuity.
- Understand that statutory protections under UAE labour law are actionable and backed by enforceable court orders.
As labour disputes continue, decisions like the Dh159,800 award make it clear that employee rights in the UAE are not merely theoretical but are actively protected by the legal system, ensuring fair outcomes when employment relationships end.
