The case in question involved an employee who sued their employer for wrongful termination and unpaid wages. The employment contract specified a salary in fiat currency (UAE Dirhams) along with an additional payment of 5,250 EcoWatt tokens, a form of cryptocurrency. The dispute arose when the employer failed to pay the cryptocurrency portion of the salary for several months.
In 2023, a similar claim was dismissed by the court due to the lack of a precise method for valuing the EcoWatt tokens in traditional currency. However, in a notable reversal, the Dubai Court of First Instance has now ruled in favor of the employee, mandating the payment of the outstanding EcoWatt tokens as specified in the employment contract. This time, the court did not require the conversion of the tokens into fiat currency, marking a significant shift in the court’s stance on cryptocurrency payments.
The ruling is based on Article 912 of the UAE Civil Transactions Law and the Federal Decree-Law No. (33) of 2021, emphasizing the importance of upholding clear contractual agreements that align with public policy and law. This decision validates cryptocurrency as a legitimate form of remuneration, provided it is part of a contractual agreement that also includes payment in fiat currency.
