TechFlow reported on August 16 that according to Cointelegraph, the Dubai Court of First Instance, in a major update to the UAE judicial system on cryptocurrencies, recognized that paying salaries in cryptocurrencies is legal in employment contracts.
Irina Heaver, partner at NeosLegal law firm, noted that the ruling in Case No. 1739 of 2024 showed a shift in the court’s position, compared to the rejection of a similar request in 2023 due to unclear valuation of cryptocurrencies, and this ruling showed that the UAE has taken a progressive attitude towards integrating digital currencies into the legal and economic framework.
The case involved an employee suing his employer for non-payment of wages, wrongful termination compensation, and other benefits. The contract provided for monthly salary to be paid in fiat currency and 5,250 EcoWatt tokens. Previously, the court recognized that the contract contained EcoWatt tokens, but did not execute crypto payments due to the lack of a clear fiat currency valuation method. In 2024, the court supported the employee's request to pay the cryptocurrency portion of the contract without converting to fiat currency.