The Abu Dhabi Labour Court has ordered a company to pay Dh159,800 to an employee who worked with the firm for nearly 11 years, after the employer failed to settle unpaid wages and end-of-service benefits following the termination of his contract.
According to court records, the employee filed a lawsuit seeking Dh29,000 in unpaid salaries and Dh130,800 as end-of-service gratuity for more than 11 years of service. He also asked the court to order immediate enforcement of the ruling and to cover legal fees and related expenses. The employee told the court that he had been employed under an indefinite contract for approximately 11 years. His total monthly salary was Dh29,000, including a basic salary of Dh16,000.
In its ruling, the court explained that UAE labour law grants foreign workers the right to receive end-of-service gratuity once their employment ends, regardless of the reason for termination, provided they have completed at least one year of continuous full-time service.
The gratuity is calculated based on the employee’s last basic salary, after accounting for any unpaid absences. The law also caps the total gratuity at the equivalent of two years’ salary, or 24 months of the worker’s final basic pay.
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