The Abu Dhabi Labour Court of First Instance has ordered a company to pay Dh427,337 to a former employee who served the firm for 16 years, covering end-of-service gratuity, notice pay, and compensation for unused leave, according to court records.
While the court ruled in the employee’s favour on several claims, it dismissed his demands for two months of unpaid wages amounting to Dh70,904 and annual incentives worth Dh60,857, citing a lack of supporting evidence.
Court documents show that the employee filed a lawsuit seeking unpaid wages, unused leave compensation, payment in lieu of notice, end-of-service benefits, and commissions. He was employed under an unlimited-term contract from April 2009 to April 2025, with a basic monthly salary of Dh24,817 and a total monthly pay of Dh35,452. No representative appeared on behalf of the company during the proceedings.
In its ruling, 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.
The court rejected the claim for unpaid wages, stating that claims must be specific and supported by evidence. It noted that the employee failed to identify the exact months for which salaries were allegedly unpaid.
However, the court approved compensation for unused annual leave, ruling that employees are entitled to at least 30 days of paid leave per year. As the company did not present proof that leave entitlements had been settled, the court calculated compensation based on the employee’s basic salary.
The court also awarded one month’s salary in lieu of notice, in accordance with the employee’s most recent contract.
Regarding end-of-service gratuity, the court ruled that UAE labour law entitles full-time foreign workers who complete at least one year of continuous service to such benefits, calculated at 21 days’ basic pay for the first five years and 30 days’ pay for each subsequent year. Based on the employee’s length of service, the court approved this claim.
Claims for commissions and annual incentives were dismissed, with the court noting that performance-based payments depend on contractual terms and employer evaluation, and that previous payments do not automatically establish entitlement without documentary proof.
The final award comprised Dh31,766 for unused leave, Dh35,452 for 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 award.
