- A company in Abu Dhabi was ordered to pay AED 110,400 in unpaid wages to an employee
- The employee signed a fixed-term contract with a basic salary of AED 7,200 and package of AED 24,000
- The court ruled the delay was the employer's fault and wages must be paid on time under law
A company in Abu Dhabi has been ordered to pay AED 110,400 (approximately Rs 26 lakh) as "unpaid wages" to an employee who received an offer letter but was never permitted to assume his role. According to Khaleej Times, the employee filed a lawsuit against the firm, alleging that his salary for the period spanning from November 2024 to April 2025 was withheld by his employers, despite signing a fixed-term contract with the firm. He said that the terms of his employment contract included a basic salary of AED 7,200 and a total monthly package of AED 24,000.
However, the company allegedly continued to postpone his start date, leaving him waiting without pay. He then took the company to court over the loss of salary.
According to Khaleej Times, the court, after reviewing the evidence, sided with the employee. In its judgement, it stated that "it was clear from the wage report, the employment contract, and the supporting documents submitted through the case management system that the delay in starting work was due to the employer."
The court also emphasised that employers are obligated to pay wages on time under labour laws. It stated that wages are a worker's right and cannot be withheld without proof, such as a written waiver or legal acknowledgement.
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However, the company argued that the employee was not entitled to his full wages as he had "not reported to duty and went on leave". However, the court rejected this reasoning, noting that there was no evidence of a formal investigation into any absence, and determined that the delay in employment was the company's fault.
The employee admitted taking eight days off, which were deducted from the corresponding amount in the final settlement.
Ultimately, the court ruled that the firm was responsible for the delay and ordered it to pay AED 110,400 (approximately Rs 25 lakh) as unpaid wages to the former employee.
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