UAE law: When employers can be held liable for injuries caused by their workers.
Question:
I own a construction company. During construction, one of my workers dropped a wooden bar on a woman while she was crossing the street, causing her injury. She is now claiming compensation from the company for her injuries and for loss of employment due to those injuries. Is the company liable for compensation even though the worker acted on his own?
Answer:
Under Article (266) of the Federal Decree by Law No. (25) of 2025 promulgating the Civil Transactions Law, a principal is liable for harm caused by a subordinate if the act occurs during the performance of their duties or because of it. The law also establishes that a relationship of subordination exists whenever the principal has actual authority over the worker in terms of supervision and direction, even if the employer did not directly select the employee.
Furthermore, Article (267) provides that the party held liable for another’s act—such as an employer—has the right to seek recourse against the employee responsible for the harm, to the extent of their liability for compensation.
Accordingly, the injured party has the right to claim compensation directly from the company based on the legal relationship between employer and employee. The determination of compensation is at the discretion of the competent court, depending on the facts and supporting evidence presented.
This principle is also supported by a Dubai Court of Cassation ruling dated 02-09-2025 (Cassation No. 2025/35 Administrative Cassation), which held that employer liability arises when an employee commits an error while performing duties, or when the job itself facilitates the wrongful act or enables its occurrence. Liability also applies where the employee abuses their position or uses it as an opportunity to commit the act.
The court further clarified that an injured party may directly pursue the employer without needing to prove fault on the employer’s part, provided there is a relationship of subordination and the wrongful act occurred during or because of the employee’s duties. However, the employer retains the right to recover any compensation paid from the employee responsible for the damage.
