The employee claimed that the company had agreed to issue a new employment contract and work permit after he obtained his Golden Visa.
An Abu Dhabi court has rejected an employee’s claim seeking Dh100,000 in compensation from his employer for alleged financial losses following what he described as an unlawful termination of his employment.
The claimant said he had signed a two-year employment contract with the company, starting on July 11, 2024. He said that after obtaining a UAE Golden Visa in August 2025, his existing employment contract, residency visa and work permit were temporarily cancelled as part of the visa process.
He claimed that he had an agreement with the employer to issue a new employment contract and work permit once the Golden Visa was granted.
However, when the employee approached his insurer to claim benefits under the UAE’s Involuntary Loss of Employment (ILOE) insurance scheme, he was informed that his employment contract had officially ended on August 11, 2025, and that no new contract had been registered.
The employee alleged that the employer had agreed to issue a new contract after his Golden Visa was approved. However, as more than one month had passed since the official termination date, the insurer rejected his claim in line with the policy’s eligibility rules.
The employee’s claims
What the employee claimed
In his lawsuit, the employee argued that the company’s “wrongful” termination of his employment caused him financial losses, including the loss of benefits under the UAE’s unemployment insurance scheme and a job opportunity in Saudi Arabia offering a salary of Dh45,975.
He claimed that the company had failed to honour the original two-year employment contract and terminated his job without a valid reason. He told the court that the situation left him unemployed and requested that the company be ordered to pay Dh100,000 in compensation.
How the company responded
The company denied any wrongdoing, stating that the employee’s termination was lawful and that he had received written notice. It said he had completed his notice period in accordance with UAE labour regulations.
The company also argued that the employee had failed to provide evidence proving any financial losses or the alleged job opportunity in Saudi Arabia.
What did the court say?
The Abu Dhabi Family, Civil and Administrative Claims Court rejected the employee’s lawsuit, ruling that he had failed to prove that the company had committed any wrongful act or caused him financial harm.
The court said the employee claimed the company had harmed him by failing to issue a new contract after his Golden Visa was granted, but he did not provide evidence proving the existence of such an agreement or any resulting damages.
The judge also noted that, based on the employee’s own statement, the cancellation of his employment contract and work permit was a mutual arrangement made to complete the Golden Visa process. Therefore, the court found that the cancellation did not amount to wrongdoing by the company.
The court further ruled that the employee had not provided sufficient evidence to support his claimed losses, including the alleged Saudi job offer or his claim that the company was responsible for the loss of his unemployment insurance benefits.
The court dismissed the Dh100,000 compensation claim and ordered the employee to pay the legal costs.
