Company Fined Dh113,611 for Failing to Settle Employee Dues in Abu Dhabi

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Abu Dhabi: The Abu Dhabi Labour Court of First Instance has ordered a company to pay Dh113,611 in compensation to a former employee after ruling that he was dismissed without receiving his legal entitlements following more than 21 years of service.

The court found that the company failed to settle the employee’s outstanding dues upon termination, including unpaid salaries and end-of-service benefits. According to court records, the employee filed the case after being terminated without notice and without payment of his dues.

The plaintiff told the court that he had worked in the same position for more than two decades, earning a basic salary of Dh6,500 and a total monthly income of Dh8,000. He claimed Dh16,000 in unpaid wages for two months, Dh130,000 in end-of-service gratuity, and Dh13,000 for unused annual leave accumulated over nearly five years.

In its ruling, the court stressed that employers are legally obligated to pay wages on time in accordance with employment contracts. It awarded the employee Dh16,000 in unpaid salaries. The court also ruled on the end-of-service gratuity, noting that foreign workers are entitled to such benefits based on the length of continuous service, provided they have completed at least one year of employment, with unpaid absences excluded from service calculations.

After reviewing the evidence, the court concluded that the employee had completed 21 years and six months of service and was entitled to Dh93,051 in end-of-service benefits. The total compensation awarded, including unpaid wages and other dues, amounted to Dh113,611.