UAE court orders company to pay an employee DH200,000 for this reason

The Dubai Civil Court of Appeal recently affirmed a judgment passed by a lower court, ordering a company's proprietors to compensate an employee with 200,000 dirhams for the emotional distress and harm inflicted upon him.

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This stemmed from false accusations of forgery intended to coerce him into relinquishing his labor rights, allegations that were ultimately disproven in the Criminal Court.

The employee, dissatisfied with the initial ruling, lodged an appeal, citing flaws in the judgment's rationale, deviations from documented evidence, and infringements upon his right to a fair defense. Conversely, the company owners sought to annul the ruling, urging the court to reconsider the case or defer it to the Labor Department, arguing the absence of tort liability on their part due to stringent safety measures for all employees. Additionally, they proposed a reduction in the compensation as a precautionary measure.

The crux of the matter lay in the plaintiff's assertion that the defendants maliciously accused him of forging an employment contract to manipulate his salary, resulting in legal ramifications that impeded his ability to travel, care for his ailing mother, and eventually attend her funeral in his home country. Despite being exonerated by the Criminal Court, the plaintiff endured prolonged anguish and financial hardship, exacerbated by the criminal proceedings instigated by the false accusations.

After attempts at a peaceful resolution were unsuccessful, the matter was brought before the Court of First Instance, which found in the employee's favor and gave him 200,000 dirhams in compensation. The appeal resulted from both parties' disagreement with this ruling.

In its deliberation, the Court of Appeal affirmed the validity of the initial ruling, emphasizing its adherence to legal precedents and the absence of procedural irregularities. Consequently, the court dismissed the appeals from both parties and ordered each to bear their respective legal costs and attorney fees. The Court of Appeal upheld the judgment mandating the company's owners to remunerate the employee with 200,000 dirhams, reaffirming justice in the face of unwarranted accusations and the ensuing hardships endured by the plaintiff.

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