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Thu, Nov 13, 2025 | Jumada al-Awwal 23, 1447 | Fajr 05:15 | DXB 
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UAE: Employee told to pay Dh310,000 for not serving notice, paying company dues
The court assigned a financial expert to review the company's claims after it sued the employee
The Abu Dhabi Labour Court First Instance has ruled that a former employee must pay approximately Dh310,000 to a company he previously worked for.
The company had filed a lawsuit claiming the employee owed them various amounts, ranging from compensation for failure to give due notice before resigning to excess phone charges. The company also demanded 9 per cent interest from the date of the claim until full payment, in addition to legal fees and court expenses, according to a report published by local newspaper Al Khaleej.
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The details of the lawsuit showed the company is seeking Dh180,000 as compensation for the employee's failure to give proper notice before leaving, along with Dh23,225, which he was allegedly overpaid during one month of work.
It is also asking for the remaining balance of a loan, amounting to Dh105,325. In addition, it claims the former employee failed to return a company laptop worth Dh3,883, and made phone calls exceeding the allowed limit, costing Dh423.
The company is requesting legal interest of 9 per cent from the date of the claim until full repayment, along with court fees, legal expenses, and attorney’s fees.
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The employee had worked with the company for 11 months in a managerial position, earning a basic salary of Dh49,000 and a total monthly package of Dh90,000. He resigned without settling his dues to the company, according to the claim.
The court assigned a financial expert to review the case and verify the company's claims. The expert concluded that the company was indeed entitled to Dh23,225 in overpaid salary and Dh121,825 as the remaining loan balance more than the amount originally claimed by the company.
Regarding the compensation for failing to give notice, the court clarified that both parties in an employment contract have the right to terminate the relationship for a legitimate reason. However, the party initiating termination must provide a 30-day notice. If no such notice is given, compensation equivalent to the notice period (referred to as "notice allowance") must be paid to the other party.
Azza Al Ali
Azza Al Ali is a reporter from Ras Al Khaimah, dedicated to sharing stories that bring the community’s voices to life. She’s passionate about connecting with people and highlighting what truly matters to them.
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