The Abu Dhabi Court of Cassation awarded the worker Dh103,665 as unused leave and notice period pay
Top Stories
UAE residents shift funeral timings to avoid summer heat, protect mourners’ health
Watch: Rains, tornado-like dust devil storms hit some parts of UAE
Dubai man banned from internet, phone seized in WhatsApp defamation case
The Court of Cassation in Abu Dhabi has partially overturned a previous labour court ruling that required a female employee to return Dh1.33 million in salaries paid during a disputed 18-month absence.
The employee (the claimant), who had been working with the defendant company since February 2, 2014, under an open-ended contract with a basic monthly salary of Dh35,937 and a total package of Dh95,630, filed a labour claim after she was terminated on October 23, 2024, alleging wrongful dismissal.
Her original claims included, unpaid wages amounting to Dh573,785, Compensation for arbitrary dismissal of Dh286,892, accrued leave amounting to Dh191,261, notice period pay of Dh95,630, gratuity of Dh324,330, moral and material damages of Dh500,000 and legal interest (12%) from the date of claim until full payment.
Stay up to date with the latest news. Follow KT on WhatsApp Channels.
The company filed a counterclaim, demanding that the employee return Dh1,338,833 allegedly received as salary during the 18-month period when she was purportedly absent without justification.
Initial ruling by lower courts
The Court of First Instance, in its ruling on March 10, 2025, granted the employee only a portion of her original claim, Dh103,665 (comprising leave and notice pay) and upheld the company’s counterclaim, ordering the employee to return salary amounting to Dh1.33 million.
The employee made and appeal of the case. However, the Court of Appeal upheld the lower court’s decision on April 29, 2025. This prompted the employee to file a final appeal to the Court of Cassation.
Court of Cassation’s findings
The Court of Cassation found serious errors in how the lower courts conducted the hearing and the ruling. The top court said that the lower courts failed to evaluate key evidence, including an official certificate from the Department of Health proving the employee had accompanied a patient abroad under a government-sponsored medical leave.
The top court also said that the the lower courts failed to recognise the absence of any formal investigation by the employer regarding her alleged unauthorised absence.
The lower courts also did not address the fact that the employer continued to pay salaries throughout the 18-month period without objection, which the Apex Court interpreted as implicit approval of her leave.
The Court of First Instance and the Court of Appeal failed to consider the employee’s good faith, as she had communicated her leave formally and provided documentation before she went on leave.
The final ruling
The court said that employees who receive salaries in ‘good faith’ under a company’s own internal automatic payroll systems should not be penalised for administrative lapses if they had no role in causing the error.
In its ruling on June 18, the court stated:
“The employer’s claim was unsupported by evidence and lacked compliance with required legal procedures. The employee cannot be held accountable for an administrative failure she had no control over, especially after submitting valid documents and acting in good faith.”
As a result, the court partially overturned the lower ruling, rejecting the company’s demand for salary repayment (Dh1.33 million), and ordered the case to be closed in favour of the employee.
The top court upheld the remaining parts of the lower court’s ruling, including payment of Dh33,536 for unused leave and Dh70,129 as notice period pay. In total, Dh103,665 was awarded to her from the original judgement.
The Court of Cassation ordered the employer to pay court fees, including Dh1,000 in attorney fees, to the employee. The employee will also be refunded the appeal deposit.
ALSO READ:
- Dubai salary in crypto? Court orders company to pay employee’s pay in dirhams, e-currency
- Dubai: Employee wins Dh336,000 end-of-service compensation
- Company asked to pay Dh512,000 to employee for terminating contract without reason
DATE . July/28/2025
