Employee in Abu Dhabi ordered to repay over Dhs290,000 after misusing funds for personal gains

The Abu Dhabi Labour Court has ruled that an employee must repay Dhs290,383 to his employer. The individual had been working as a public relations manager for the company, which had entrusted him with an official power of attorney to facilitate business operations. As part of this responsibility, funds were transferred to him for use in advancing the company’s interests. However, the company later discovered that he had misappropriated and unlawfully taken the entrusted funds for his own use.

The company filed a lawsuit against its former employee, demanding repayment of Dhs266,227. This sum represents loans provided to the employee as well as funds allocated for completing company transactions and managing its operations, which the employee allegedly failed to return. Additionally, the lawsuit seeks Dhs28,077, which corresponds to the cost of phones purchased by the employee using company funds without authorisation, and that were never delivered to the company.

The company reported that the employee was hired under an indefinite contract as a public relations manager, with a total salary of Dhs17,000. To facilitate the management of its business operations, the company provided him with an official power of attorney and transferred funds for use in advancing its interests. These funds were entrusted to him specifically for fulfilling company-related objectives. However, the company later discovered that he had misused and misappropriated the entrusted funds, refusing to return the company's assets placed under his responsibility.

The employee was interrogated, followed by termination of his employment in accordance with Article 44 of the Labor Law. Following his termination, he initially refused to return company assets, including a company car, cards, and a laptop. However, after a formal complaint was lodged, he eventually returned these items. During further review, the company discovered that he had used company funds to purchase mobile phones, which were not handed over to the company.

Additionally, while outside the country, he received a loan from the company but failed to repay it, despite assuring that he would do so upon receiving a settlement from his insurance provider. He also misused Dhs9,000 transferred by the company, providing no explanation for the expenses incurred. On top of this, he acquired loans from the company amounting to Dhs243,515, none of which were repaid.

Investigations revealed further misconduct, including his responsibility for traffic penalties totaling Dhs2,690 and the misappropriation of Dhs5,317 intended for company-related tasks. He also failed to return an additional Dhs449 that had been transferred to him.