Abu Dhabi Court of Cassation, Labour Appeal No. 261 of 2021, judgment of 5 January 2022
The time bar on hearing labour claims is subject to the Civil Transactions Law rules on suspension and interruption. A court claim or any judicial step taken by the creditor against the debtor interrupts it; the time already run is wiped out and a new period starts only when the interruption ends. Under the ministerial resolution then in force, an employer that did not notify the Ministry of Human Resources and Emiratisation at least thirty days before ending a UAE national's service raised an irrebuttable presumption that the termination lacked a lawful reason, making it arbitrary whatever grounds the employer relied on.
A UAE national employed since 1988 under an unlimited contract was dismissed on 31 January 2016. He sued for his labour entitlements in 2016; that litigation ended with a cassation judgment registered in May 2020. In 2021 he filed a fresh labour complaint and claim for unpaid wages, leave pay, notice pay, gratuity, a special bonus and compensation for arbitrary dismissal. The Court of Appeal awarded him AED 432,399, including AED 191,175 as compensation for arbitrary dismissal. The employer appealed in cassation, arguing that the claim was time-barred under Article 6 of the Labour Relations Law and that the dismissal was justified by repeated absences after a written investigation.
The Court of Cassation dismissed the appeal. On limitation, it restated its settled view that the period in Article 6 is governed by the general rules of the Civil Transactions Law (Articles 483, 484 and 485). The earlier court action interrupted the period; time did not run while it was pending, and a new period began only when the interruption ended, so the 2021 claim was admissible. On the dismissal, the Court applied Article 1 of Ministerial Resolution No. 176 of 2009, issued under Article 192 of the 1980 Labour Law and applicable before its repeal by Ministerial Resolution No. 212 of 2018. Termination of a national's service without notifying the Ministry at least thirty days in advance is deemed to be without lawful reason. That creates a presumption that cannot be rebutted, so the employer's disciplinary grounds were irrelevant. Notice pay and compensation for arbitrary dismissal were therefore correctly awarded. The case was decided under the 1980 Labour Law and the Civil Transactions Law of 1985.
The judgment shows two practical points for employers. A worker's earlier lawsuit keeps the time bar from running, so a second claim on the same entitlements can be heard years after the dismissal. And, under the rules that applied to Emirati employees at the time, a procedural failure to give the Ministry thirty days' notice was enough on its own to make a dismissal arbitrary, regardless of the merits of the employer's case.
| Article 6 of Federal Law No. 8 of 1980 (Labour Relations Law) Decided under this law; it has been replaced by UAE Labour Law. |
| Articles 483, 484 and 485 of Federal Law No. 5 of 1985 (Civil Transactions Law) — text of articles 483, 484, 485 Decided under this law; it has been replaced by Civil Transactions Law 2025. |
| Article 1 of Ministerial Resolution No. 176 of 2009, issued under Article 192 of Federal Law No. 8 of 1980 (repealed by Ministerial Resolution No. 212 of 2018) |
“ورتب على عدم مراعاة هذا الإجراء قيام قرينة قانونية غير قابلة لإثبات العكس بأن ذلك الإنهاء قد وقع بغير سبب مشروع”Short quotation from the judgment as published by the court. The full judgment is on the court’s official service.
A worker's waiver of statutory rights during employment is void, but a settlement made after resignation binds him
A release or acknowledgement by a worker giving up rights under the employment contract or the Labour Relations Law while the employment relationship continues is void, e…
A worker injured through the employer's fault may sue in the civil court in tort, beyond the labour-law compensation
Compensation for work injuries under Article 37 of the Labour Relations Law and Cabinet Resolution No. 33 of 2022 is a statutory, no-fault entitlement based on risk, calc…
The two-year labour limitation period applies to unexpired claims, counted from the old start date for earlier periods
Federal Decree-Law No. 9 of 2024 replaced Article 54(9) of the Labour Law: claims are now barred two years after the employment relationship ends, instead of one year aft…
The RAK Free Zone arbitration scheme does not take away the courts' jurisdiction over free-zone disputes
Arbitration in UAE civil and commercial matters rests on the parties' free agreement, which defines its scope and removes the dispute from the courts. The Ras Al Khaimah …
Under the law then in force, an insurer's diya liability for a female victim was half that for a male
Diya (blood money) for death or bodily injury is governed by Islamic law under Article 1 of the Penal Code of 1987 and Law No. 3 of 1996, applying the Maliki school. The …
A debtor who claims insolvency must prove it; the court must rule on the claim as framed and as characterised on cassation
Insolvency (الإعسار) exists where a debtor's debts equal or exceed his assets; once established, the court may place him under interdiction under Articles 401 and 402 of …
Whether you are establishing a new venture, restructuring an existing enterprise, or exploring residency pathways — we are here to advise.
Arrange a Consultation →