A company’s oversight in failing to deposit Dh500 proved expensive when an Abu Dhabi labour court dismissed its request to review a previous decision due to unpaid court fees.
The issue began when an employee filed a lawsuit against his former employer, claiming unpaid dues of Dh99,250.
His legal action followed failed efforts to settle the matter amicably. The employee, under a fixed-term contract since May 21, 2021, with a basic salary of Dh10,000 (totaling Dh20,000), sought:
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Unpaid wages from December 1, 2024, to February 21, 2025 (Dh54,000)
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Compensation for unused leave over the past two years (Dh19,000)
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End-of-service gratuity (Dh26,250)
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The employee claimed he resigned on January 21, 2025, due to unpaid wages and served his notice period until February 21, 2025.
Court of First Instance Decision
On April 17, the Court of First Instance partially ruled in favor of the employee, ordering the company to pay Dh96,333. The employee attended the session, but no employer representatives were present.
The employer appealed, stating the initial lawsuit notice was sent to the wrong phone number, preventing attendance at hearings.
The company also argued the contract with the employee was an investment/management agreement, not a labour contract, with a base salary of Dh4,000 plus 50% of profits.
It accused the employee of altering the contract terms to increase his salary.
Appeal Proceedings
During the appeal, all evidence, including a telecommunications provider report from du verifying the notification number, was reviewed.
The court found the appeal was filed after the 30-day legal deadline, thus dismissing it and upholding the original decision.
Reconsideration Attempt
The company sought reconsideration of the Appeals Court decision, but its plea was denied for not paying a Dh500 security deposit.
The court noted that procedural guidelines under Articles 171–173 of the Civil Procedure Law were not followed by the employer.
As per paragraph (4) of Article (173) of Federal Decree-Law No. (42) Issuing the Civil Procedure Law, an appeal requires a Dh500 deposit.
Rejecting the plea mandates the employer to comply with the original ruling and pay Dh96,333 plus all court costs and legal fees.
The case underscores the necessity of adhering to legal procedural requirements, including timely submissions and mandatory court deposits.
