UAE Court Awards Dh110,400 to Employee Who Never Began Work

UAE Court Awards Dh110,400 in Wages to Employee Who Never Began Work

In a notable judgment reinforcing the strength of UAE labour protections, the Abu Dhabi Labour Court (First Instance) has ordered an employer to pay Dh110,400 to a worker who never officially began his role. The case centred around an employment contract that was signed but never acted upon due to employer delays.

The Case in Brief

The claimant, who filed a lawsuit against the company, asserted that he had signed a fixed-term contract with a basic salary of Dh7,200 and a total monthly package of Dh24,000. However, despite the formal agreement, the employer allegedly delayed his start date for over four months, during which the employee remained unpaid.

The court found that the employee was entitled to compensation for four months and 18 days, deducting eight days that the claimant admitted taking off. This amounted to a final award of Dh110,400 in unpaid wages.

Employer's Defence Rejected

The employer argued that the employee did not report for duty and took leave without starting work. However, the court found no evidence of disciplinary investigations or formal documentation supporting the employer’s claim. In contrast, wage reports, the employment contract, and records submitted via the case management system clearly demonstrated that the delay in work commencement was attributable to the company.

Legal Principles at Play

Citing Federal Decree-Law No. 33 of 2021 on regulating labour relations, the court emphasized the employer’s obligation to pay wages on time through approved Ministry of Human Resources and Emiratisation systems. The ruling also referenced Article 912 of the UAE Civil Transactions Law, affirming that a worker’s wages cannot be withheld unless a written waiver or a legal exception applies.

What This Means for Employers and Employees

This case sends a strong message to employers across the UAE: delaying an employee's start date without legal cause or documentation does not exempt them from salary obligations. Employees who have signed binding contracts are protected by law, even if they never formally start working due to employer-related delays.

Legal Guidance from Al Kabban & Associates

At Al Kabban & Associates, we assist both employers and employees in understanding their legal obligations under UAE labour law. Our employment law specialists offer tailored support in resolving disputes, drafting contracts, and ensuring regulatory compliance.

If you are facing similar employment-related issues or require legal advice, contact our firm today for a confidential consultation.

For more information or legal assistance, contact us at +971 4 453 9090 or visit www.alkabban.com.

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