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Abu Dhabi Court Orders Ex-Employee to Repay Dh310,000 to Former Employer Over Unsettled Dues

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Court gavel on desk

In a significant employment dispute ruling, the Abu Dhabi Labour Court First Instance has ordered a former manager to compensate his ex-employer with approximately Dh310,000 for various financial obligations left unsettled after his resignation.

The legal battle began when the company filed a lawsuit alleging multiple breaches by their former employee. According to court documents obtained by Al Khaleej newspaper, the claims included compensation for failure to serve proper notice period, repayment of salary overpayments, outstanding loan balances, unreturned company property and unauthorized phone usage charges.

The breakdown of the financial claims reveals:

  • Dh180,000 as notice period compensation for abrupt resignation

  • Dh23,225 in salary overpayment during final month of employment

  • Dh105,325 remaining balance on a company loan

  • Dh3,883 for an unreturned company laptop

  • Dh423 in excess mobile phone charges beyond allocated limit

The company further demanded legal interest at 9% from claim date until full settlement plus coverage of all judicial expenses and attorney fees. Court records indicate the defendant held a senior management position with monthly earnings comprising Dh49,000 basic salary plus allowances totaling Dh90,000 per month package.

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A forensic accounting expert appointed by the court conducted detailed financial audits that confirmed most claims while discovering additional amounts owed. The investigation verified:

  • The actual salary overpayment totaled Dh23,225 (matching company's claim)

  • The outstanding loan balance amounted to Dh121.825 (exceeding initial claim by Dh16.500)

The judicial panel provided important clarification regarding termination procedures under UAE labor law: "Both contracting parties maintain equal rights to terminate employment relationships with valid cause," stated court documents reviewed by our correspondent. "However,the terminating party must provide minimum thirty days' advance notice or equivalent compensation." This compensatory amount is legally termed "notice allowance."

The case highlights growing employer vigilance regarding contractual obligations amid increasing mobility in UAE's competitive job market.Legal experts note similar disputes often arise when high-earning professionals transition between roles without completing exit formalities.The judgment serves as cautionary precedent about financial liabilities attachedto premature resignations without proper settlements.

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