In a significant judgement, the Dubai Court of First Instance has paved the way for cryptocurrency to be recognised as a valid form of salary payment under UAE employment contracts.

This ruling emerged from case number 1739 of 2024 (labour), where an employee sought unpaid wages, wrongful termination compensation, and other employment benefits. The employment contract stipulated payment of 5,250 EcoWatt tokens alongside traditional currency—Dirhams.

After the employer failed to provide any proof of salary payment, the court ruled in favour of the employee and ordered the employer to pay the outstanding salary in EcoWatt tokens as per the contract, which clearly specified payment in both Dirhams and EcoWatt tokens. Despite the employer’s argument that cryptocurrency payments were not legally enforceable, the court upheld the contract’s terms, marking a significant shift in how digital currencies are perceived within the legal system. 

The decision underscores that wages are a fundamental employee right, safeguarded by Article 912 of the Civil Transactions Law. It reinforces the legal framework of Federal Decree-Law No. (33) of 2021, which governs UAE labour relations, and highlights the flexibility in wage payment methods, whether via the traditional Wage Protection System (WPS) or other approved systems.

You may also like:

• UAE employers may face AED 1mn fine for worker exploitation
• Dubai begins 4-day work week trial for 15 govt offices
• Abu Dhabi revamps maternity leave for Emiratis in private sector
• KSA enhances worker benefits; Introduces new leaves

Industry experts welcome the court's decision, describing the recognition of cryptocurrency as a valid option for salary payments as a "significant step forward." They also emphasised that this move not only secures workers' rights but also aligns with the region's ongoing tech transformation. Cryptocurrency as part of employee salaries is gaining popularity across global tech companies, and with this latest decision, the UAE tech sector is likely to follow suit by including digital currency in compensation packages—a trend that may soon extend to other sectors as well.