
- An Abu Dhabi company has been ordered to pay Rs 26 lakh in unpaid wages to an employee.
- The company kept postponing the joining date and eventually didn't allow him to commence work.
- The court ruled in favour of the employee, stating that the delay in starting work was due to the employer.
An Abu Dhabi company has been ordered to pay AED 110,400 (approximately Rs 26 lakh) as "unpaid wages" to an employee who, despite receiving an offer letter, was never allowed to start working.
The employee, whose name was not disclosed, filed a lawsuit against the company, claiming that his salary for the period from November 11, 2024, to April 7, 2025, was illegally withheld.
According to a report in The Khaleej Times, the employee had signed a fixed-term contract with the company, which stipulated a basic salary of AED 7,200 and a total monthly compensation package of AED 24,000. Despite the signed contract, the employee was never given the opportunity to commence his employment. The court's decision underscores the importance of upholding employment agreements, even when work hasn't begun.
The court 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," according to local newspaper Emarat Al Youm.
The Abu Dhabi Labour Court emphasised that under Federal Decree-Law No. (33) of 2021 regulating labour relations, employers are obligated to pay wages on time according to the systems approved by the Ministry of Human Resources and Emiratisation. Citing Article 912 of the Civil Transactions Law, the court ruled that wages are a worker's right and cannot be withheld without proof, such as a written waiver or legal acknowledgement.
The employer had argued the employee wasn't entitled to his salary because he "did not report to duty and went on leave." But the court found no evidence of a formal investigation into any absence, determining that the delay in employment was the company's fault. The employee admitted taking eight days off, which were deducted from the total, resulting in a payment for four months and 18 days.
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