Abu Dhabi company ordered to pay Dh875,700 in unpaid salaries after failing to formally fire employee

The Abu Dhabi Court of Cassation has mandated a company to pay an employee Dh875,761 in outstanding wages and benefits, ruling that her employment was never formally terminated despite the cessation of salary payments. This decision by the highest judicial authority in Abu Dhabi concludes a protracted legal battle that spanned multiple court levels.

The employee initiated a labor case in 2025, asserting that her employer ceased her monthly salary of approximately $26,666 (Dh97,866) from April 2025 without providing any formal termination notice. Her claims included unpaid salaries, leave pay, notice compensation, end-of-service gratuity, contractual bonuses, stock-related benefits, and compensation for alleged wrongful termination during her probation period.

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The employee argued that the company had never issued a formal termination notice and that the employment relationship remained legally valid.

Initially, a lower court awarded her only Dh18,350 for the notice period and a return air ticket, rejecting the majority of her claims. The employee appealed this ruling, escalating the dispute to higher courts. Subsequently, the earlier judgment was overturned, and a court-appointed expert was tasked with reviewing the case. The employee consistently argued that the absence of a formal termination notice meant her employment relationship remained legally valid.

She testified that she continued working after her salary payments stopped and was unable to seek employment elsewhere due to her unresolved employment status and lack of termination papers. The court-appointed expert's investigation revealed no documents, letters, or emails indicating that the company had officially informed the employee of her termination. Despite the employee's repeated attempts to contact the company via phone, email, and newspaper notice, these efforts were unsuccessful.

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The court-appointed expert found no document, letter or email showing that the company had informed the employee that her services had been terminated.

Based on the available evidence, the expert concluded that the employee effectively remained employed until she filed her lawsuit on November 25, 2025. The expert calculated her entitlement to wages for the period from the end of May 2025 until the lawsuit filing date, amounting to Dh760,354. Additional calculations included Dh57,088 for end-of-service gratuity and Dh58,317 for 29 days of unused annual leave. The value of a return air ticket was assessed at Dh2,500.

However, the court dismissed the employee's claims for two contractual bonuses, as the expert determined she did not meet the conditions for receiving them. Following the expert's findings, the court revised the initial judgment, ordering the company to pay the employee a total of Dh875,761. The company was also instructed to provide a return ticket or its cash equivalent of Dh2,500, unless the employee had already secured new employment. Legal costs were also awarded to the employee.

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The expert found that the employee's repeated attempts to contact the company by phone, email, and through a newspaper notice were unsuccessful.