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For the first time in history, the #Dubai. Court has acknowledged the salary payments in crypto after plaintiff reached court for unpaid wages.
The United Arab Emirates has its image as a crypto-favoring country, where it was among the first few nations to openly endorse and develop this industry. Moreover, Dubai, a city in UAE, is the hub for crypto enthusiasts. From launching its own DMCC Crypto facility to accepting cryptocurrency in payment, the City of Gold has presented a crypto-friendly environment for companies and investors. And now the Dubai court has acknowledged the usage of cryptocurrency for salaries.
Dubai Court Ruling Favoring Crypto For Salary
As per the Wasel & Wasel legal firm, Dubai Court has acknowledged the payment of salaries in the form of cryptocurrency for the first time in history. As per the order, the cryptocurrency payments that are stated in the employment contracts will be accepted legally.
This ruling comes after an ex-employee filed a legal complaint on the failure of the company to pay a portion of their salary, which was in cryptocurrency per their employment contract. The plaintiff has approached the court after facing unpaid wages, wrongful termination compensation, and missing employment benefits. With that, a legal complaint has been booked under case number 1739 of 2024 (Labour).
The issue gains more importance with the revelation of the ex-employee’s missing salary of 5,250 EcoWatt tokens (crypto tokens). The employer failed to pay six months of salary in the form of cryptocurrency before terminating the employment.
After analyzing the circumstances and presenting documents, the Dubai court ruled in favor of the plaintiff while recognizing cryptocurrency as a valid form of salary. The court has ordered to pay the unpaid wages in the EcoWatt tokens itself rather than fiat.
Positive Ruling Comes After Rejection In 2023
However, this year, the the court ruled in favor of the plaintiff after recognizing crypto as a form of salary payment. It gets more interesting as cryptocurrency, especially Bitcoin Reserve is solution to the US National Debt.
The US presidential candidate, Donald Trump, and Senator Cynthia Lummis have spoken of developing policies for strategic Bitcoin reserves, making crypto the most hyped asset among countries. in 2023, the case (Judgment No. 6947 of 2023) came to an unsuitable conclusion as the plaintiff failed to provide the calculated value of the 5,250 EcoWatt tokens. As a result, the Dubai court has gone against the plaintiff and stated.

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