Breaking news:
In a landmark ruling, the Dubai Court of First Instance has recognized the legality of paying salaries in cryptocurrency under employment contracts.
In a significant legal development, the Dubai Court of First Instance has recognized the validity of paying salaries in cryptocurrency, specifically a digital token, marking a shift in the UAE's judicial stance on virtual currencies.
The case, numbered 1739 of 2024 (Labour), involved an employee who sued their employer for unpaid wages, including a portion in the digital tokens, as well as wrongful termination compensation and other benefits. The court ruled in favor of the employee, ordering the employer to pay the owed salary in the digital tokens, citing the employer's failure to provide evidence of payment.
This decision represents a departure from the court's previous stance in 2023, where a similar claim was denied due to the employee's inability to provide a clear valuation of the cryptocurrency involved. The 2024 ruling demonstrates a more progressive approach to integrating virtual currencies into the UAE's legal and economic framework, emphasizing the importance of upholding clear contractual agreements. The court's reliance on Article 912 of the UAE Civil Transactions Law and Federal Decree-Law No. (33) of 2021 in both judgments shows the consistent application of legal principles in wage determination, despite the evolving interpretation of these provisions.
