Court orders company to pay a former employee Dhs280,000 in compensation

The Abu Dhabi Labor Court-First Instance has ruled that a company be obligated to pay Dhs280,156 in compensation to one of its employees.

The latter had worked for the company for approximately 25 years. However, there was a delay in the payment of the monthly wages, and the end-of-service gratuity was also unpaid despite the termination of the employee's contract.

Specifically, an employee initiated legal proceedings against his employer requesting that the court order the defendant to pay him the following sums: the outstanding balance of his wages, expenses incurred in the course of the legal action, and the costs of the enforcement process.

The employee initiated legal proceedings on the basis of his claim that he had been in the employ of the company for a period of approximately 25 years, receiving a monthly basic salary of Dhs7,000, and the full salary is Dhs14,000. The employee demanded an end-of-service gratuity of Dhs165,667 and back salaries of Dhs205,900.

The Court determined that the case documentation did not contain any evidence to suggest that the company was not liable for the requested wages, thereby affirming the employee's right to receive the delayed wages amounting to Dhs212,433. Following the acknowledgement by the employee of payment amounting to Dhs91,411, subsequent to the deduction of the aforementioned amount, the employee would be left with a remaining balance of Dhs121,022. In view of the fact that the individual in question specified his request at Dhs114,489, the court was obliged to rule on this amount.

The Court further explained that Article 51 of the Labor Law stipulates that an employee who has completed one year of continuous service with their employer is entitled, upon the end of their service, to a gratuity.

The amount of this gratuity is determined in accordance with the standards and cases stipulated in the aforementioned article. Given the aforementioned facts, and in consideration of the employee's 25-year and two-month tenure with the company, the employee is eligible to receive a compensation amounting to Dhs165,667.