Abu Dhabi Labour Court orders private company to pay AED110.4K to employee - Here's why

The Abu Dhabi Labour Court has found a private company guilty of delaying the onboarding of an employee who entered into a fixed-term job contract last November.

According to the job contract between the private company and the employee, he was supposed to start working on November 11, 2024, with a fixed salary of AED 7,200 and an additional allowance of AED 24,000.

Therefore, the court has ordered the employer to pay AED 110,400 in unpaid wages to the employee, who faced an unexplained postponement of work from November 11, 2024, to April 7, 2025, from the employer's side.

The employee did not receive any salary during this period, and now the company is required to pay the due amount, despite the employee not working a single day.

Interestingly, the private company, in its defence, submitted that it withheld the employee’s salary because the employee had been on unapproved leave during that time - "did not report for duty and proceeded on leave,"The Labour Court firmly rejected this claim due to a lack of evidence of such a leave request or any official disciplinary action taken against the employee.

The court noted that the only leave accounted for was eight days, which had been approved by the company and was subsequently deducted from the compensation awarded.

The employee submitted all the relevant documents as proof of the job contract—such as a signed contract, wage report, and evidence that the delay in onboarding was entirely the employer’s fault.

As a result, the court ruled in favour of the employee, awarding AED 110,400 as compensation for the unpaid duration of four months and 18 days.

The Labour Court reiterated that Article 912 of the UAE Civil Transactions Law clearly states that wages are a legal right of the employee from the moment a job contract is signed, not from the day the employee physically starts work. The judge also stressed that no employer can withhold an employee’s salary without valid evidence, such as a written waiver or legal justification.

The court stated, “Federal Decree-Law No. 33 of 2021 mandates employers to honour salary payments in accordance with UAE labour law and the systems regulated by the Ministry of Human Resources and Emiratisation.”

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This decision by the Labour Court further strengthens the value and significance of employment contracts in the region, sending a clear message to all UAE employers, “Once an employment contract is signed, it becomes legally binding on both parties. Failing to comply with the contract terms such as delaying onboarding without valid or documented reasons, can result in serious penalties.”