The Dubai court's judgment is different from the 2023 decision. The ruling recognizes contractual agreements regarding crypto wages.
The Dubai Court of First Instance has recognized crypto payments for salaries under employment contracts in a landmark ruling. Posting By Vassell & Vassell Law Firm.
The ruling marks a shift in the UAE's legal approach to digital currencies, reflecting the growing acceptance of crypto. In particular, this contrasts with a previous ruling by the same court in 2023, when a similar claim involving crypto was dismissed because the employee failed to provide an accurate valuation of the digital currency.
A recent case arose when a plaintiff sued for wrongful termination and unpaid wages. Plaintiff's employment contract stipulated a monthly salary in fiat currency and an additional 5,250 EcoWatt tokens in the form of crypto. The employer argued that salary payments in crypto were not legally enforceable.
This time, the court ruled in favor of the employee, not only recognizing the validity of the payment in crypto, but ordering payment in EcoWatt tokens rather than converting it to fiat currency.
The ruling comes as Dubai is transforming itself into an international crypto hub. The city has a bespoke Regulatory framework For digital assets companies, News reported. Not to mention the Dubai International Financial Center, a financial-free zone where companies can operate with less red tape.
“This ruling represents a significant shift in the court's approach, demonstrating greater acceptance of cryptocurrency as a valid and enforceable means of payment,” the posting said. “It emphasizes the importance of upholding contractual agreements as long as they are clear, agreed to by both parties, and not contrary to public policy or law.”
Court enforcement of crypto payments as stipulated in contracts sets a precedent that will encourage further integration of digital currencies in various sectors, not just employment.