Employee to receive Dh434,884 in full vacation pay, as ruled by UAE court

Employee Secures Significant Payment from Former Employer in Abu Dhabi Court Case

In a landmark ruling, the Abu Dhabi Court of Cassation has ordered a former employer to pay their employee a total of Dh434,884. The employee had initially filed a case in the Abu Dhabi Court of First Instance, seeking payment for outstanding wages, vacation pay, notice pay, end-of-service gratuity, commissions, and late payment interest.

The employee had worked for her employer from January 4, 2018, to June 30, 2024. Upon ending her employment, she filed a case claiming Dh72,000 in outstanding wages, Dh247,464 in vacation pay, Dh60,000 in notice pay, Dh180,000 in end-of-service gratuity, 25% of monthly profits exceeding Dh110,000 in agreed commission, and 5% late payment interest.

Initially, the Abu Dhabi Court of First Instance ordered the employer to pay Dh323,400. However, the employee appealed the decision, and the amount due to be paid was increased to Dh379,400 following the appeal.

The employee's claim for full vacation pay and commissions was initially rejected by the Abu Dhabi Court of First Instance but was granted by the appeal court. The employee's basic salary was Dh36,000, and she received a total of Dh60,000, including profit-sharing.

In the final ruling by the Abu Dhabi Court of Cassation, the former employer was ordered to pay the employee AED 434,884, which includes the increased amount from the appeal, as well as the full amount for vacation pay and commissions. This ruling sets a precedent for similar cases in the future, emphasising the importance of employers fulfilling their contractual obligations to their employees.