Company Ordered to Pay Employee Overdue Benefits and Wages of AED 222.6K

An Abu Dhabi labor court has ordered a company to pay 222,605 dirhams to a former employee for unpaid wages and benefits after the company failed to show up in court to defend itself. The ruling highlights how employers who ignore legal proceedings can face significant financial consequences when workers pursue their rights through the courts.

The former employee originally sought 565,000 dirhams, claiming unpaid salaries, wrongful termination compensation, annual leave allowances, notice pay, housing allowances, and end-of-service benefits. He also requested his experience certificate and settlement of a cash advance worth 51,153 dirhams that he had paid to the company through approved invoices.

The company's absence from court proceedings worked against them significantly. Under UAE labor law, employers bear the burden of proving they paid wages and benefits to their workers. When the company failed to send legal representation, they couldn't provide evidence of salary payments or benefit distributions.

The court relied heavily on an accounting expert's report to determine what the employee was actually owed. The expert confirmed the worker's basic salary was 10,000 dirhams monthly, though his total compensation had reached 25,000 dirhams after his last raise. His service period totaled four years, five months, and 27 days.

Here's what the court approved: 100,000 dirhams in unpaid salaries, 20,000 dirhams for two years of unused annual leave, 31,452 dirhams in end-of-service benefits, 20,000 dirhams in housing allowances, and 51,153 dirhams for the cash advance settlement. The judge also ordered the company to provide the employee's experience certificate.

But the court rejected several claims. The wrongful termination compensation was denied because the employee couldn't prove he was fired for filing legitimate complaints with the Ministry of Labor or pursuing valid legal action against his employer. The notice pay claim was also rejected since there wasn't sufficient evidence that he was terminated without proper notice.

This case reflects a broader trend in UAE labor disputes where companies that ignore court proceedings often face larger financial penalties. For employers, it shows the importance of maintaining proper payroll records and responding to legal challenges. For workers, it demonstrates that the court system can provide meaningful recourse when employers fail to meet their obligations, especially when proper documentation exists.

The ruling also underscores the critical role of accounting experts in labor disputes, as courts increasingly rely on their reports to determine actual compensation owed when employment records are incomplete or disputed.