The Abu Dhabi Labour Court of First Instance has ordered a company to pay Dh427,337 to a former employee who worked for the firm for more than 16 years, covering end-of-service gratuity, notice pay, and compensation for unused annual leave.
Court records show that while the court upheld several of the employee’s claims, it rejected his requests for two months of unpaid wages amounting to Dh70,904 and annual incentives worth Dh60,857, citing insufficient evidence. The ruling was reported by Emarat Al Youm.
The employee filed the lawsuit seeking unpaid salaries, compensation for unused leave, payment in lieu of notice, end-of-service benefits, and commissions. He stated that he was employed under an unlimited-term contract from April 2009 until April 2025, earning a basic monthly salary of Dh24,817 and a total monthly salary of Dh35,452. No representative from the company appeared during the court proceedings.
In its reasoning, the court confirmed that the employee had completed 16 years and four days of service under a valid employment relationship, making him eligible for statutory benefits under UAE labour law.
However, the court dismissed the claim for unpaid wages, noting that such claims must be specific and supported by clear evidence. The employee failed to identify the exact months for which salaries were allegedly unpaid, rendering the claim too vague to uphold.
On the issue of unused annual leave, the court ruled in favour of the employee, citing the legal entitlement to at least 30 days of paid leave per year. As the company did not appear or submit proof that leave dues had been settled, compensation was calculated based on the employee’s basic salary.
The court also granted one month’s salary in lieu of notice, in accordance with the employee’s latest contract.
Regarding end-of-service gratuity, the court applied UAE labour law provisions granting foreign full-time employees gratuity after completing at least one year of continuous service. Based on the employee’s tenure and salary, the court approved the claim.
The claim for commissions was rejected, with the court ruling that performance-based payments depend on contractual terms, internal policies, and employer evaluation. Past commission payments alone, it said, do not establish a continuing entitlement without documentary proof.
The final award included Dh31,766 for unused leave, Dh35,452 in notice pay, and Dh360,119 in end-of-service gratuity, bringing the total to Dh427,337. The court also ordered the company to pay legal fees and costs proportionate to the awarded amount.
