In a historic judgment, the Abu Dhabi Court of Cassation has partially overturned an earlier verdict, which ordered a former employee to repay the DH1.33 million in the salary earned during the absence of 18 months.
Case background
The claimant, a female employee, joined the defendant company on February 2, 2014 under an open-ended employment contract. He held a senior post with a basic monthly salary of DH35,937 and a total package of DH95,630.
His employment ended on 23 October 2024, when the company abolished his services. After the expiration, he filed a labor claim that was accused of incorrect dismissal, claiming that it was an inappropriate end.
The company fought the claim, arguing that the employee was absent from work for 18 months without proper justification and continued to receive salary during this period. He demanded that he repay DH1.33 million, the total amount of salary paid during the disputed deadline.
Initial ruling vs cassation decision
Initially, the Labor Court ruled in favor of the employer, ordered the employee to return the entire amount. However, the case took a significant turn when he reached the Court of Cassation.
The High Court partially overturned the verdict, stating that the employee was not compelled to pay the entire amount as fixed earlier. The court’s verdict considered contractual conditions and legal provisions that were in favor of the employee, eventually reduced his financial liability.
Implications for labor law in UAE
The matter is reminiscent of the complexity of employment disputes and the importance of the fixed process. This UAE highlights the major aspects of the labor law:
Employees have the right to challenge the termination that they consider unjust.