The company was granted Dh2.3 million in compensation for both material and moral damages.
Dubai: A former accounts manager has been ordered to pay Dh2.3 million to his employer after being found guilty of embezzling more than Dh2.1 million in customer payments entrusted to him during his employment.
The Dubai Court of First Instance awarded the company Dh2.3 million in compensation for material and moral damages, along with 5 per cent annual interest until the amount is fully paid. The defendant was also directed to cover court costs and pay Dh2,000 in legal fees.
The ruling followed the employee’s conviction in a criminal case, in which he was sentenced to three months in jail, fined Dh2,107,250 — matching the amount he embezzled — and ordered to be deported from the UAE.
The Court of Appeal and Court of Cassation later upheld the conviction. Following this, the Dubai Civil Court ordered him to compensate his former employer for the losses incurred as a result of the offence.
Discrepancies uncovered
According to court records, the case was initiated after the manager of a Dubai-based freight services company noticed irregularities in the firm’s financial collections and lodged a complaint at Al Muraqqabat Police Station in September 2023.
An internal audit later revealed that the employee, who worked as an accounts manager, had been collecting payments from customers but either depositing only part of the money into company accounts or failing to transfer the funds altogether.
Authorities determined that the total amount misappropriated stood at Dh2,107,250.
Conviction upheld
Public prosecutors charged the employee with embezzlement, alleging that he abused his position of trust by unlawfully appropriating company funds collected from customers on behalf of his employer.
In November 2023, the Dubai Criminal Court found him guilty and sentenced him to three months in prison, imposed a fine equal to the amount involved in the offence, and ordered his deportation after completion of the sentence.
The conviction was later upheld by both the Court of Appeal and the Court of Cassation, making the ruling final and binding.
Civil compensation awarded
The company subsequently filed a civil case seeking damages for the financial losses it incurred due to the embezzlement.
In its ruling, the court stated that the criminal conviction had already established the employee’s liability and confirmed that the company suffered direct financial harm as a result of the misappropriation of funds.
The court also considered the broader impact of the offence, including the company’s inability to utilise and invest the missing money, the damage to its business interests and reputation, and the costs incurred in pursuing both criminal and civil action.
On this basis, the court ordered the employee to pay Dh2.3 million in compensation for material and moral damages, along with 5 per cent annual interest until the amount is fully settled. The ruling also required him to bear court costs and legal expenses.
