A high-profile labor case in the United Arab Emirates has taken a stunning turn after the Abu Dhabi Court of Cassation, which partially overturns the previous decision, in which a former employee needed to pay DH1.33 million in salary earned during 18 months absence.
Background of case
The dispute began when the employee joining the company on February 2, 2014, was terminated on 23 October 2024 under an open-ended contract. The employee took over a senior post, with a basic monthly salary of DH35,937 and a total monthly package of DH95,630.
After his termination, he filed a labor claim that was accused of incorrect dismissal. However, the employer counted the salary by demanding repayment of DH1.33 million in salary, which he claimed that the employee was absent without proper justification.
Preliminary labor government
The Labor Court initially ordered the claimant to be repaid to the claimant along with the employer. The court determined that the absence of the employee from the work was unfair and the salary received during that time should be refunded.
Court of Cassation Steps
In a dramatic turn, the Court of Cassation in Abu Dhabi reviewed the case and partially overturned the first decision. The court ruled that the employee was not compelled to return the entire amount as per the first order, cited the legal and constructive factors working in his favor.
While the court did not absent an employee of all financial responsibility, the decision reduced the burden of his repayment compared to the original ruling.
Major Legal TakeaWays
This case highlights many important aspects of the UAE Labor Act:
Employees Rights – Eliminent employees have the right to challenge the dismissal if they believe they were wrong.
