The Abu Dhabi Labour Court of First Instance in the United Arab Emirates has ordered a company to pay a former employee AED 316,333 in outstanding employment entitlements after their working relationship ended without the settlement of his financial dues. The amount includes unpaid monthly salaries, annual leave compensation and end-of-service gratuity following more than 13 years of employment. The case highlights the legal responsibilities of employers and the importance of protecting the financial rights of employees.
UAE Labour Court Orders Company to Pay Employee AED 316,333 in Unpaid Wages and End-of-Service Benefits
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UAE Labor Court
According to details published by Al Khaleej newspaper on Sunday, November 1, 2026, the employee filed a lawsuit against his former employer after failing to receive outstanding payments following the termination of his employment. He argued that the company had not fulfilled its contractual obligations relating to salaries, leave entitlements and end-of-service benefits, prompting him to seek payment through the competent labour court.
In his lawsuit, the employee demanded AED 232,500 in unpaid wages, AED 75,164 in end-of-service gratuity and AED 9,000 in annual leave compensation. He also requested that the company bear the legal fees and expenses associated with the proceedings and asked for the judgment to be immediately enforceable without requiring a security deposit.
During the proceedings, the court explained that the responsibility for proving the payment of wages rests with the employer. The company failed to provide legally acceptable evidence demonstrating that the employee had received the outstanding amounts. It also did not submit documentation sufficient to challenge the employee’s claims regarding unpaid salaries, which influenced the court’s assessment of his entitlement.
The employment contract established that the employee’s gross monthly salary amounted to AED 15,500. In the absence of evidence that the employer had settled the outstanding wages, the court awarded the employee AED 232,500 in unpaid salary, corresponding to the amount he had claimed in the proceedings.
Regarding annual leave compensation, the court considered the employee’s request for AED 9,000 in unpaid leave entitlements. Since the company did not provide the legally required proof that the relevant payments had already been made, the court awarded the requested amount covering the final two years of the employment relationship.
The court also examined the employee’s entitlement to an end-of-service gratuity and established that he had worked for the company for 13 years, 11 months and 20 days. After calculating the benefit under the applicable legal provisions, the court determined that he was entitled to AED 74,833, slightly less than the amount originally requested in his lawsuit.
The final court-awarded amount was divided into three principal components: AED 232,500 in unpaid salaries, AED 9,000 in annual leave compensation and AED 74,833 in end-of-service gratuity. Together, these amounts total AED 316,333, which the company was ordered to pay under the first-instance judgment.
The case illustrates the importance of employment contracts, salary records and other financial documents in establishing the rights and obligations of the parties involved in a workplace dispute. It also demonstrates that employers may be required to provide evidence showing that salaries and employment benefits have been paid, rather than simply disputing an employee’s financial claims.
The judgment reflects the application of UAE employment regulations governing wage payments, annual leave compensation and end-of-service entitlements. These rules form part of the country’s broader labour protection framework and provide mechanisms for employees and employers to resolve disputes through the appropriate legal channels.
It is important to note that the reported judgment was issued by the Labour Court of First Instance. It should therefore not automatically be described as a final and unappealable ruling, and the announcement does not establish that the company has already transferred the awarded amount to the employee. Any subsequent proceedings would depend on the applicable procedural requirements and legal circumstances.
For citizens and expatriate residents working in the UAE private sector, the case serves as a reminder of the importance of understanding employment entitlements, monitoring salary payments and maintaining relevant documentation. For employers, it underlines the need to keep accurate payment records and fulfil contractual and statutory obligations relating to wages, annual leave and end-of-service benefits.
Source: Al Khaleej Newspaper – Abu Dhabi Labour Court of First Instance
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