Last verified against official sources on 26 October 2026.
What changed
The development is a reported order of the Abu Dhabi Labour Court of First Instance, published in a court report dated 15 October 2026. The report states that the court ordered an employer to pay AED 90,750 to a dismissed employee for unpaid wages and notice-period allowance.
The report does not state a case number. It identifies the issuing court as the Abu Dhabi Labour Court of First Instance and records that the employee’s contract showed a gross monthly salary of AED 16,500. The court found that the employer had not paid approximately four months’ wages and had also failed to pay the notice-period allowance. The court found no evidence that the company had discharged the salary liability.
The practical point is direct: where an employer cannot prove payment, the court may enforce the contractual wage entitlement. The report also states that the court reiterated the employer’s obligation to pay wages on their due dates under the applicable Ministry-approved wage-payment framework and labour-law executive regulations.
This is not a new statute or a new Cabinet Resolution. It is a first-instance labour-court decision reported from Abu Dhabi. Its value for employers and employees is that it shows how the court approached proof. The employee relied on the employment contract. The employer, according to the report, did not produce evidence showing that the salary liability had been paid or validly extinguished. In a salary dispute, payroll records, bank-transfer evidence, wage-payment system records, signed settlement documents and correspondence can decide the result.
The order is also significant because it includes notice-period allowance. Many workplace disputes focus only on monthly salary arrears. In practice, a final employment claim may include several connected heads of claim: unpaid wages, notice-period allowance, accrued leave, end-of-service gratuity, commission or other contractual benefits. Each head must be supported by the contract, payroll records and legally relevant evidence. For related final-settlement issues, our note on auditing the basic wage in a UAE gratuity dispute explains why the salary structure matters when entitlements are calculated.
Who is affected
Employees dismissed with salary arrears
The clearest affected group is employees in Abu Dhabi who have been dismissed while wages remain unpaid. If the contract records a specific salary and the employer has not paid it on time, the employee should preserve the contract, salary slips, bank statements, work communications and termination documents. The reported order shows that an employee’s contractual wage figure can be central when the employer cannot prove payment.
Employers with weak payroll evidence
Employers are equally affected. A company may believe it has paid, offset, deferred or settled salary, but belief is not evidence. If the business cannot produce reliable proof, it faces serious litigation risk. The court report is a reminder that payroll compliance is not only an HR function. It is litigation preparation. Each payment should be traceable to the employee, amount, wage period and contractual entitlement.
Employees claiming notice-period allowance
The order also concerns employees whose employment ends without payment of notice-period allowance. The report does not provide the detailed contractual notice period or the court’s calculation method. It does, however, confirm that notice-period allowance formed part of the amount awarded. Employees should therefore avoid treating notice as a minor issue. Where notice has not been worked or paid, the termination documents and contract terms must be reviewed carefully.
Companies negotiating final settlements
The decision matters for companies seeking to close employment files through final settlement. A final settlement should be clear, accurate and supported by payment evidence. If the employee later alleges non-payment, the employer must be able to show what was paid, when it was paid and which entitlement it covered. Vague acknowledgments, unsigned schedules or internal spreadsheets may not be enough if challenged.
Sales staff, commission earners and variable-pay employees
Although the reported order concerned wages and notice allowance, the same evidence discipline applies to commission and variable pay. Employees claiming unpaid commission should gather targets, sales records, approvals, commission policies and email confirmations. Employers should document commission rules, eligibility and payment calculations. We discuss this category in more detail in our article on legal remedies for unpaid sales commission after resignation or termination in the UAE.
Family-law clients affected by loss of salary
The ruling also matters outside employment law. For family-law clients, unpaid wages or unlawful termination can affect maintenance capacity, financial disclosure and enforcement strategy. A spouse who has not received salary for several months may need to prove the arrears, expected recovery and current financial position. Conversely, where a party claims inability to pay support because of employment issues, salary records and labour-court claims may become relevant evidence.
Mainland UAE, DIFC and ADGM distinction
This reported order came from the Abu Dhabi Labour Court of First Instance. It should be understood as a mainland Abu Dhabi labour-court development. It is not reported as a DIFC Courts decision or an ADGM Courts decision. Employers and employees in the DIFC or ADGM should not assume that the same court process applies. The practical lesson about evidence of payment remains important, but jurisdiction and applicable employment rules must be checked at the start.
Key dates, deadlines and penalties
- 15 October 2026: the court report date.
- AED 90,750: the amount the Abu Dhabi Labour Court of First Instance reportedly ordered the employer to pay.
- AED 16,500: the gross monthly salary recorded in the employee’s contract.
- Approximately 4 months: the reported period of unpaid wages.
- Notice-period allowance: the report states that this was unpaid and included in the court’s order.
The report does not state the filing date, hearing date, appeal deadline, case number, administrative fine or any separate penalty imposed on the employer. It also does not state the exact notice period or provide a full breakdown of the AED 90,750. Those details should not be assumed.
What is supported is the core principle applied in the reported order: an employer must pay wages when due under the applicable Ministry-approved wage-payment framework and labour-law executive regulations, and must be able to prove payment if a dispute reaches court.
Practical steps to take now
For employees
- Preserve the contract: keep the signed employment contract and any amendments showing salary, allowances and notice terms.
- Collect payment evidence: download bank statements, wage slips, payroll emails and any wage-payment notifications covering the disputed months.
- Record the arrears period: prepare a simple month-by-month table showing salary due, salary received and the unpaid balance.
- Keep termination documents: retain dismissal letters, resignation acknowledgments, cancellation papers and final-settlement forms.
- Do not sign unclear settlement papers: if a document states that all dues are paid when they are not, seek advice before signing.
- Include notice issues early: if notice-period allowance is unpaid, raise it with the salary claim rather than treating it as an afterthought.
For employers
- Audit unpaid salary exposure: identify any employees with delayed wages, partial payments or unresolved final settlements.
- Match payments to wage periods: ensure that bank transfers or wage-payment records identify the month and amount paid.
- Retain proof, not assumptions: keep payroll ledgers, transfer confirmations, employee acknowledgments and settlement schedules together.
- Review termination workflows: confirm that notice-period entitlement is assessed before dismissal documents are issued.
- Avoid unsupported deductions: if the company says money was withheld or set off, it must be able to justify that position with documents.
- Train HR and finance together: salary disputes often fail because payroll, HR and legal records do not match.
For employees facing pressure after resignation
Some salary disputes escalate after resignation or termination, particularly where the employer alleges work abandonment or uses immigration status as leverage. Each issue must be assessed on its own documents. Where relevant, our article on challenging an absconding report after resignation in the UAE explains the evidence issues that can arise when an employment dispute becomes linked to immigration records.
How ProConsult Advocates can help
ProConsult Advocates & Legal Consultants assists employees and employers in UAE employment disputes, including unpaid salary claims, notice-period disputes, final settlements and evidence preparation for labour-court proceedings.
For employees, we can review the employment contract, calculate the unpaid wage position based on available records, identify supporting evidence and prepare a strategy for pursuing contractual entitlements. Where the employment dispute affects divorce, maintenance or financial disclosure, we can coordinate the employment evidence with the wider family-law position.
For employers, we can audit payroll-risk files, review final-settlement documentation, assess notice-period exposure and advise on how to present payment evidence if a claim has already been filed. We also help employers correct weak documentation before a dispute becomes litigation.
We do not promise outcomes. Labour-court decisions depend on the contract, the records, the applicable forum and the evidence presented. Early legal review usually improves the quality of the file and reduces the risk of missing key points.
To discuss an unpaid salary, notice-period or final-settlement dispute, contact ProConsult Advocates through our consultation page.
FAQ
What did the Abu Dhabi Labour Court order in this reported case?
The Abu Dhabi Labour Court of First Instance reportedly ordered the employer to pay AED 90,750 to a dismissed employee for unpaid wages and notice-period allowance. The employee’s contract recorded a gross monthly salary of AED 16,500.
Does the report state any separate penalty or fine against the employer?
No. The report states the payment order of AED 90,750. It does not state a separate administrative fine, criminal penalty or additional sanction.
What evidence matters most in an unpaid salary claim?
The key evidence usually includes the employment contract, payroll records, bank statements, wage-payment records, salary slips, termination documents and any signed settlement papers. In the reported case, the court relied on the contract and found no evidence that the employer had discharged the salary liability.
Does this Abu Dhabi ruling apply to DIFC or ADGM employees?
The reported order was issued by the Abu Dhabi Labour Court of First Instance. It is not reported as a DIFC or ADGM decision. DIFC and ADGM employment matters require a separate jurisdiction and applicable-law analysis.
For any queries or services regarding legal matters in the UAE, you can contact us at (+971) 4 3298711, or send us an email at proconsult@uaeahead.com, or reach out to us via our Contact Form Page and our dedicated legal team will be happy to assist you.