UAE court fines a company 120,000 AED for an employment contract breach

The Abu Dhabi Family, Civil, and Administrative Claims Court has ordered a corporation to pay 120,000 dirhams to an employee as compensation for a breach of employment contract.

Although the employee had already resigned from her prior position at the company's request and was looking forward to her new one, the offer of 37,000 dirhams in pay was then withdrawn.

In the lawsuit, the woman sought 187,000 dirhams in compensation along with additional fees and expenses. She had accepted a job offer from the defendant with a 37,000 dirham salary, contingent on terminating her employment with another entity. After her resignation, the company failed to honor its commitment, causing her to lose her previous job. Supporting documents, including certificates and correspondence, were presented to the court.

The court's ruling clarified that the defendant had indeed offered the plaintiff a position with a 37,000 dirham salary, later increasing to 40,000 dirhams after a six-month probation period. The plaintiff had fulfilled her part by resigning from her previous employment, leaving her without income for three months before inquiring about her start date with the defendant.

It was evident from the documentation that the defendant's failure to appoint the plaintiff according to the terms of the job offer constituted a breach. Despite the defendant's claim that government regulations prevented the plaintiff's appointment, the court held that the defendant should have ensured compliance before requesting her resignation.

Regarding the compensation claim, the court found that the defendant's actions had caused material and emotional harm to the plaintiff, resulting in the loss of her previous job and the associated financial security. Consequently, the court ordered the defendant to pay 120,000 dirhams in damages along with associated expenses and fees.

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