Abu Dhabi firm ordered to pay Rs 26 lakh to employee prevented from joining work

A company in Abu Dhabi has been ordered to pay AED 110,400 (approximately Rs 26 lakh) in unpaid wages to an employee who was issued an offer letter but was never permitted to assume his role.

According to a report in Khaleej Times, the unnamed employee filed a lawsuit against the firm, alleging that he was denied his salary for the period spanning from November 11, 2024 to April 7, 2025, despite having signed a fixed-term employment contract.

The terms of the agreement specified a basic monthly salary of AED 7,200 and a total compensation package amounting to AED 24,000. However, the company allegedly continued to postpone his start date, effectively barring him from joining work.

Faced with ongoing delays, the employee approached the court to claim the wages he argued were contractually owed.

The court, after reviewing the evidence, sided with the employee. In its judgement, it stated: “It was clear from the wage report, the employment contract, and the supporting documents submitted through the case management system that the delay in starting work was due to the employer.”

It further noted that employers were legally bound to pay salaries in accordance with established labour regulations. “Employers are obligated to pay wages on time under labour laws,” the court stressed.

In its defence, the company argued that the employee was not entitled to his full wages as he had “not reported to duty and went on leave.” However, the court rejected this reasoning, noting that there was no documentation or formal investigation to prove any unauthorised absence on the part of the employee.

While the employee did acknowledge taking eight days of leave during the disputed period, the court deducted the corresponding amount from the final settlement.

The court ultimately ruled that the company was responsible for the delay and ordered it to pay the outstanding amount of AED 110,400 in unpaid wages to the former employee.