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UAE court orders man to pay Dh30,000 for illegally holding company car after termination
The court ruled that the worker’s decision to keep the vehicle as leverage during a labour dispute constituted an illegal act of material deprivation
- PUBLISHED: Fri 3 Jul 2026, 1:30 PM
The Al Ain Court of First Instance has ordered an ex-employee to pay an aggregate sum of Dh30,000 to his former employer after he unlawfully refused to return a company-owned vehicle following the termination of his services.
The court ruled that the worker’s decision to keep the vehicle as leverage during a labour dispute constituted an illegal act of material deprivation.
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According to official judicial records, the corporate plaintiff filed a civil lawsuit against their former staff member. The company demanded that the defendant hand over the keys to the vehicle, pay an operational rental compensation of Dh100 for every single day he illegally held the car, and pay an additional Dh50,000 to cover the material and moral damages caused by the disruption of their business operations.
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The dispute initially began when the company officially terminated the worker's contract and repeatedly requested that he surrender the corporate vehicle assigned to him. Instead, the angry employee parked the car at his residence and flatly refused to give it back.
In his defence before the judiciary, the worker argued that he was legally withholding the vehicle because the company had failed to pay out his final settlement and end-of-service benefits. He claimed the car was security until his financial dues were cleared.
However, the Al Ain Court of Civil Claims completely rejected his defence. The presiding judge clarified that under UAE law, a worker cannot take matters into their own hands or illegally seize company assets as an arbitrary countermeasure for an ongoing labour dispute. The court noted that the proper legal channel was to file an official complaint with the Ministry of Human Resources and Emiratisation.
The court noted that by keeping the car, the worker deprived the business of using its asset, causing direct material harm. Balancing the damage, the court ordered the man to pay Dh30,000 in total damages to the company and directed him to pay all litigation and legal fees.