Essence of the case

The employee filed a lawsuit against her employer, accusing him of illegal termination. She had been working under a fixed-term contract since July 2022, earning a salary of 30,000 AED per month plus 5,250 EcoWatt tokens (cryptocurrency). Since the end of 2022, the employer stopped payments, including the cryptocurrency part. In April 2023, after filing a complaint with MOHRE, the company partially settled the debt in dirhams but did not return the tokens. Soon after, the employee was dismissed without explanation or notification.

Jurisdiction

The dispute underwent mandatory pre-trial proceedings through MOHRE and was then transferred to court. The case was heard by the Dubai Court of First Instance (Case No. 1739/2024). The decision was rendered on 17 July 2024. The proceedings lasted about four months.

Positions of the parties

Claimant

The employee stated that:

• Dismissal is revenge for the complaint. The employer dismissed her immediately after she demanded payment of the debt. This violates Article 47 of the Labour Law (Federal Law No. 33 of 2021), which prohibits dismissal in response to an employee's complaint or lawsuit.

• The dismissal procedure was violated. There was no notice given 30–90 days (Article 43), no disciplinary procedure was conducted, and there were no documented grounds for immediate termination (Article 44).

• The cryptocurrency part of the salary was not paid. Although EcoWatt tokens were stipulated in the contract as part of the remuneration, the company refused to pay them. This violates the terms of the employment contract.

The employee demanded:

1. to declare the dismissal illegal,

2. to recover 31,500 EcoWatt tokens for 6 months,

3. to compensate for salary for the notice period,

4. to pay holiday pay, gratuity, and final settlement,

5. to assign compensation for moral and material damage,

6. to reimburse court costs and accrue interest.

Defendant

The employer denied any connection between the dismissal and the complaint. He stated:

• Other reasons for dismissal. Allegedly, the contract ended naturally or the employee was not performing her job well. However, no evidence of this was presented in court.

• Payment in tokens is not mandatory. The company claimed that cryptocurrency is not provided for by the WPS system and doubted the obligation to pay tokens.

• The financial dispute was settled. After the employee contacted MOHRE, the debt in dirhams was settled. The employer believed that the employment relationship was therefore concluded.

Court decision

The court sided with the employee. The decision stated:

1. The dismissal was declared illegal. It violated Article 47 of the Labour Law, as it was a reaction to the lodged complaint.

2. Payment of the cryptocurrency part of the salary was awarded. The court ordered the payment of 31,500 EcoWatt tokens for 6 months. This set a precedent: for the first time, the court explicitly recognized tokens as part of mandatory remuneration.

3. Other compensations were paid. Including:

• salary for the last month;

• payment for the notice period;

• compensation for unused vacation;

• gratuity;

• the cost of a return flight ticket (if provided for in the contract);

• compensation for illegal dismissal (up to 3 months' salary);

• interest and court costs.

The total amount of claims was approximately AED 221,378 plus 5% per annum.

Legal norms

The court referred to the following laws:

• Labour Law (Federal Law No. 33/2021) — key articles 43 (notification), 44 (grounds for dismissal without notice), 47 (protection against dismissal for a complaint).

• Executive Order No. 1/2022 — Article 16 specifies the procedure for paying wages, including bonuses and tokens.

• Civil Code (Federal Law No. 5/1985) — Article 912 establishes the employer's obligation to pay the agreed salary, including non-traditional forms of payment.

• Federal Law No. 42/2022 — procedure for resolving labour disputes through MOHRE.

Significance of the decision

This case set an important precedent:

• It confirmed protection for workers against dismissal for filing a complaint.

• It recognized the legality of salary payment in cryptocurrency if provided for in the contract.

• The court demonstrated a willingness to adapt norms to new forms of work and payment.