UAE Employment Contract Breach: Court Dismisses Dh95,000 Compensation Claim

UAE employment contract breach cases highlight the role of external factors like visa approval in employer obligations. In a recent case, an Abu Dhabi court dismissed a Dh95,000 compensation claim filed by an employee who alleged a breach of contract when his job offer was rescinded.

The worker had resigned from a previous role, signed a Dh36,500 monthly salary contract, and started work after receiving an entry visa. However, the employer’s submission of incorrect academic credentials resulted in visa rejection twice, preventing work permit issuance. The company argued the offer was conditional on regulatory approval, which was not granted for reasons beyond its control.

The Abu Dhabi Family, Civil and Administrative Cases Court ruled no breach occurred since visa denial was the authority’s decision, not the company’s fault. The case was dismissed, and the plaintiff was ordered to cover court fees and legal costs.

Key takeaway for employees and employers
Visa and work permit approvals remain critical conditions for employment contracts in the UAE. Employers must communicate such conditions clearly, while employees should understand that visa rejections may affect contractual obligations. Compensation claims require clear proof of breach caused directly by the employer.

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