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The Al Ain Court of Civil, Commercial and Administrative Claims in the United Arab Emirates has ordered the owner of an unlicensed domestic worker recruitment office to refund money to a customer and compensate him for damages arising from their agreement.

The ruling highlights the potential financial and legal consequences of dealing with recruitment service providers that operate without the required authorization from the relevant authorities. It also illustrates the importance of verifying a company’s licensing status before entering into agreements or paying substantial recruitment fees.

According to a report published by Emarat Al Youm newspaper on October 28, 2026, the dispute began when a man entered into an agreement with an office owner to recruit two domestic workers for a total payment of AED 31,250. The customer paid the agreed amount, and residency procedures for the workers were subsequently completed. However, the arrangement did not produce the expected outcome. One of the workers reportedly absconded, while the other refused to work for the customer, leading him to demand the return of the money he was still owed.

The claimant filed a civil lawsuit seeking the repayment of AED 16,250, which he identified as the remaining amount outstanding from the original payment. He also requested AED 10,000 in compensation for the financial and emotional damage he said he had suffered, together with legal expenses. His claim relied partly on an earlier criminal judgment finding the office owner guilty of conducting domestic worker recruitment activities without obtaining the necessary licence from the Ministry of Human Resources and Emiratisation.

The defendant contested the lawsuit and asked the court to dismiss the claim, submitting supporting documents and receipts. However, the court determined that the earlier criminal judgment had already established the unlawful nature of the recruitment activity and the defendant’s responsibility for it. The court also found that the claimant had paid the original agreed amount and that the defendant had failed to demonstrate that the outstanding AED 16,250 had been repaid or otherwise lawfully settled.

In assessing compensation, the court concluded that the defendant’s established wrongdoing had caused both financial and non-financial harm to the claimant. The harm included being deprived of the use of his money and experiencing distress as a consequence of the failed arrangement. Rather than awarding the full AED 10,000 requested, the court assessed appropriate compensation at AED 4,000. The final ruling therefore required the defendant to pay AED 20,250 in total, comprising the outstanding refund and compensation, together with the applicable court expenses. The remaining claims were rejected.

The case underlines the importance of checking whether domestic worker recruitment offices are officially licensed before making payments or entering into contracts. UAE authorities have repeatedly warned residents against using unauthorized recruitment providers and have encouraged customers to rely on approved offices. Consumers should keep written agreements, payment receipts and communications relating to recruitment services, particularly when disputes arise. The judgment concerns the specific circumstances of this case and should not be interpreted as an automatic entitlement to the same amount of compensation in other disputes.

Source: Emarat Al Youm Newspaper.