ABU DHABI, UAE – An employee who dedicated over two decades to a company has been awarded more than Dh113,000 in compensation by the Abu Dhabi Labour Court. The ruling came after the worker was dismissed without receiving his rightful end-of-service benefits and unpaid salaries, highlighting the legal protections in place for employees in the UAE.
End-of-service gratuity is a critical benefit for all UAE employees, especially expatriates who may not have access to other forms of retirement savings. This lump sum is calculated based on your length of service and final salary, and is meant to reward long-term commitment and support workers as they transition after employment. UAE expats should always ensure they understand how their gratuity is computed, regularly review their employment contracts, and keep records of their tenure and salary.
Knowing your rights and entitlements and speaking up when something is amiss is key to making sure you receive what you’ve earned at the end of your service.
Decades-Long Career Ends Abruptly
According to reports, the case was filed by a former employee who had worked for the same company for approximately 21 years and six months. After his service was terminated, he found himself without the financial settlement he was legally owed. According to court records, the man was earning a total monthly income of Dh8,000, with a basic salary of Dh6,500.
He took his case to the Labour Court, demanding payment for two months of unpaid wages amounting to Dh16,000, his end-of-service gratuity calculated at Dh130,000, and Dh13,000 for unused annual leave. The court’s investigation confirmed that the company had failed to settle its obligations upon terminating his employment.
Court Upholds Employee Rights
The Abu Dhabi Labour Court of First Instance sided with the employee, emphasizing that employers are legally bound to pay wages on time as specified in employment contracts. The court validated his claim for Dh16,000 in unpaid salaries.
Furthermore, the court addressed the critical issue of end-of-service benefits. It reiterated that foreign workers who have completed at least one year of continuous service are entitled to a gratuity payment. After careful review, the court calculated that the plaintiff was owed Dh93,051 in end-of-service benefits for his 21.5 years of dedication.
The final judgment ordered the company to pay a total of Dh113,611 to the former employee, covering his unpaid wages and gratuity. This case serves as a powerful reminder of the importance of knowing your labor rights and the legal avenues available to ensure they are respected.
As reported by Gulf News, this ruling underscores the UAE’s commitment to upholding labor laws and protecting the entitlements of its workforce.