Daijiworld Media Network - Abu Dhabi
Abu Dhabi, Jun 21: In a landmark ruling that reinforces the strength of employment contracts in the UAE, the Abu Dhabi Labour Court has directed a private company to pay AED 110,400 (approximately ?26 lakh) to an employee who was denied salary despite signing a contract and never beginning work due to employer delays.
The employee, whose identity remains undisclosed, signed a fixed-term employment contract in November 2024 that promised a monthly salary of AED 7,200, along with an allowance of AED 24,000. However, the employer repeatedly postponed the employee’s start date, resulting in no salary being paid from November 11, 2024, to April 7, 2025.
The company attempted to defend the salary withholding by alleging the employee had gone on unapproved leave. The court firmly rejected this claim, stating that there was no evidence of such a leave request or any formal disciplinary process. The only leave accounted for was eight days, which was acknowledged and deducted from the compensation awarded.
Relying on Article 912 of the UAE Civil Transactions Law, the court made it clear that wages are a legal right from the moment a contract is signed, not from the day the employee physically joins work. The judge emphasized that employers cannot withhold salaries without concrete proof, such as a written waiver or legal justification.
The court also referred to Federal Decree-Law No. 33 of 2021, which mandates employers to honour salary payments in accordance with UAE labour law and systems regulated by the Ministry of Human Resources and Emiratisation.
According to documents submitted by the employee—including a signed contract and wage report—the delay in onboarding was entirely the employer’s fault. As a result, the court ruled in favour of the employee, awarding AED 110,400 as compensation for the unpaid duration of four months and 18 days.
This verdict sends a strong message to UAE employers: once an employment contract is executed, it is legally binding. Companies that fail to onboard employees without valid or documented reasons risk not only reputational damage but also significant financial liability.