In a recent decision, the Abu Dhabi Court of Cassation sided with an employee, instructing her previous employer to compensate her Dh434,884, affirming her right to full vacation pay for her entire employment period.
The employee was employed from January 4, 2018, to June 30, 2024, earning a basic salary of Dh36,000 and a total of Dh60,000, inclusive of profit-sharing.
After her employment ended, she filed a lawsuit for several entitlements, including:
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Unpaid wages: Dh72,000
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Vacation pay: Dh247,464 (initial claim)
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Notice pay: Dh60,000
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End-of-service gratuity: Dh180,000
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Agreed commission: 25% of monthly profits over Dh110,000
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Interest for late payment: 5% from filing date until full payment
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On January 28, the Abu Dhabi Court of First Instance ordered the employer to pay Dh323,400, covering unpaid wages, partial vacation pay for the last two years, and end-of-service benefits. Other claims, like full commissions and full vacation pay, were denied.
The employee appealed, and an expert was appointed to review the claims and documents. The appeal court, following the expert’s report, increased the owed amount to Dh379,400.
The employee contested this verdict at the Court of Cassation on three main issues:
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Commission: She claimed the expert miscalculated her commission.
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Vacation pay: She argued that only the last two years were considered, while she was owed for her full 6 years, 5 months, and 26 days of service.
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Other legal errors: Alleged misinterpretations and legal misapplications.
The Court of Cassation verified the expert’s commission calculations as accurate, based on official documents like commission statements and bank records, dismissing further commission claims.
Regarding vacation pay, the court noted that earlier rulings covered only the last two years, not the full term. Under UAE Federal Labor Law No. 33/2021, employees are entitled to compensation for any unused leave upon leaving, for the entire period of employment.
Thus, the court revised the decision, ordering the employer to pay Dh434,884 to cover full vacation pay for the complete employment span. The court also upheld claims for unpaid wages and end-of-service benefits, mandating the employer to cover court fees, including Dh1,000 for the employee’s legal fees.
This ruling highlights the UAE’s legal framework protecting employees’ rights to unused vacation leave, ensuring vacation pay covers the full employment period.
