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Gulf Press > Gulf > Court orders contractor to pay Dh195,000 to long-serving employee
Gulf

Court orders contractor to pay Dh195,000 to long-serving employee

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Last updated: 2025/12/17 at 6:36 AM
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An employee in Abu Dhabi has been awarded 195,000 United Arab Emirates dirhams (approximately $53,000 USD) following a successful resolution of a labour dispute. The Abu Dhabi Labour Court issued the ruling recently, settling a case involving unpaid wages and benefits. The judgment underscores the UAE’s commitment to protecting worker rights and enforcing labour laws within the emirate.

The case, details of which were released by the Abu Dhabi Government Media Office, highlights the procedures available to employees facing issues with their employers. The ruling provides financial compensation to the worker, covering outstanding salaries, allowances, and other entitlements. This outcome serves as a reminder to companies of the importance of adhering to UAE labour regulations.

Understanding the Abu Dhabi Labour Dispute Resolution Process

The UAE has been actively strengthening its labour laws in recent years to align with international standards and enhance worker protections. These changes aim to create a more attractive and stable work environment for both employers and employees. The Ministry of Human Resources and Emiratisation (MoHRE) plays a central role in mediating and resolving workplace conflicts.

Key Steps in Filing a Complaint

Employees facing issues such as unpaid wages, unfair dismissal, or violations of their employment contracts can file a complaint with MoHRE. The process typically begins with an attempt at amicable settlement through mediation. If mediation fails, the case can be escalated to the Labour Court for a binding decision.

According to MoHRE guidelines, complaints must be submitted within one year of the incident occurring. Documentation supporting the claim, such as employment contracts, salary slips, and communication with the employer, is crucial for a successful outcome. The ministry offers various channels for filing complaints, including online portals, mobile applications, and in-person visits to service centers.

The recent case demonstrates the effectiveness of this system. The employee successfully presented evidence of the owed amounts, leading to the court’s favorable ruling. This highlights the importance of maintaining accurate records of employment terms and conditions.

Details of the Awarded Compensation

While specific details regarding the nature of the employment and the employer have not been publicly released, the awarded Dh195,000 represents a significant sum. The compensation package included both outstanding salary payments and benefits the employee was legally entitled to. This could encompass elements like end-of-service gratuity, allowances for housing or transportation, and unpaid leave entitlements.

The Labour Court’s decision is legally binding, and the employer is obligated to comply with the payment order. Failure to do so can result in further legal penalties, including fines and potential imprisonment of company representatives. The UAE government has been increasingly proactive in enforcing court rulings related to employee rights.

This particular case involved a relatively straightforward claim for unpaid dues. However, workplace conflicts can be far more complex, involving issues like discrimination, harassment, or breach of contract. The Labour Court handles a wide range of such cases, applying relevant provisions of the UAE Labour Law.

Implications for Employers and Employees

This ruling sends a clear message to employers in Abu Dhabi and across the UAE: non-compliance with labour laws will not be tolerated. Companies are expected to fulfill their contractual obligations to employees and ensure timely payment of wages and benefits. Regular audits of payroll and benefits administration can help prevent such disputes.

For employees, the outcome reinforces the availability of legal recourse in cases of unfair treatment. It encourages workers to be aware of their rights and to utilize the established channels for resolving grievances. Seeking legal advice from a qualified labour lawyer can be beneficial, particularly in complex cases.

Additionally, the case underscores the growing emphasis on transparency and fairness in the UAE’s labour market. The government’s efforts to strengthen worker protections are aimed at attracting and retaining skilled talent, contributing to the country’s economic diversification goals. This focus on labour law compliance is expected to continue.

In contrast to some perceptions, the UAE actively works to balance the needs of employers and employees. While protecting worker rights is a priority, the government also recognizes the importance of a stable and predictable business environment. The Labour Law is designed to achieve this balance, providing a framework for fair and mutually beneficial employment relationships.

Recent Trends in UAE Labour Law

The UAE has recently implemented several key changes to its labour laws, including the introduction of a new federal decree-law in 2021. These changes aim to provide greater flexibility in employment contracts, promote equal pay for equal work, and enhance protection against arbitrary dismissal.

The introduction of the Wage Protection System (WPS) has also been instrumental in ensuring that employees receive their salaries on time and through approved channels. The WPS requires employers to pay salaries electronically, providing a verifiable record of payment. This system has significantly reduced instances of wage theft and improved financial security for workers.

Meanwhile, the Ministry of Human Resources and Emiratisation continues to launch initiatives aimed at educating both employers and employees about their rights and responsibilities. These initiatives include workshops, seminars, and online resources, all designed to promote a culture of compliance and respect in the workplace.

The resolution of this labour dispute, and the increasing number of similar cases being successfully addressed through the UAE legal system, demonstrate the effectiveness of these reforms. However, challenges remain in ensuring full awareness and implementation of the new laws across all sectors of the economy.

The employer in this case has the right to appeal the Labour Court’s decision within a specified timeframe, typically 15 days. If an appeal is filed, the case will be reviewed by a higher court. The outcome of any potential appeal will be closely watched by legal professionals and stakeholders in the UAE labour market. The Ministry has not indicated whether it anticipates a surge in similar complaints following this ruling, but it is likely to reinforce existing monitoring and enforcement efforts.

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News Room December 17, 2025
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