Dubai: In a landmark ruling, the Dubai Court of First Instance has said that salary payments can be made in cryptocurrency as valid under United Arab Emirates (UAE) employment contracts.
The ruling, issued in case number 1739 of 2024 (labour), involved an employee who claimed unpaid wages, wrongful termination compensation, and other related employment benefits. The employment contract said that 5,250 EcoWatt tokens in addition to fiat money would be paid.
According to a report by the Wasel & Wasel law firm, the employer was unable to provide any proof of payment; thus, the court decided in the employee’s favor and ordered the employer to pay the outstanding salary in EcoWatt tokens for the service.
The court upheld the contract’s terms as clear and valid despite the employer’s argument that crypto payments were not legally enforceable.
This ruling differs from a similar 2023 instance in which a claim involving EcoWatt tokens was denied due to the employee’s inability to show a clear worth of the cryptocurrency.
The 2024 decision demonstrates the court’s developing view on digital currencies, laying the groundwork for their widespread implementation in industries such as employment.
Mahmoud Abuwasel, a managing partner at Wasel & Wasel, said the ruling is a “significant step forward.”
“The court is now accepting and enforcing cryptocurrency as part of wage payments, provided that the contract clearly defines these terms,” he noted.
