- The decision in case number 1739 of 2024 represents a change in approach.
- This demonstrates a progressive approach to incorporating digital currencies.
The decision by the Dubai Court of First Instance to acknowledge crypto wage payments as legitimate under employment contracts is a major development in the UAE judiciary’s views on crypto.
According to Irina Heaver, a partner at the UAE legal company NeosLegal, the decision in case number 1739 of 2024 represents a change in approach from the court’s previous position in 2023. When a comparable claim was rejected due to the absence of specific value for the cryptocurrency in question.
Progressive Approach
Moreover, according to Heaver, this demonstrates a “progressive approach” to incorporating digital currencies. Especially, into the economic and legal system of the region. An employee, according to Heaver, sued their company, alleging non-payment of salary, wrongful termination compensation, and other benefits.
A monthly wage of 5,250 EcoWatt tokens and a fixed amount of fiat currency were both included in the employee’s job contract. The employer’s failure to pay the employee’s token amount of their wage within the six-month period gave rise to the dispute.
The court recognized the incorporation of the EcoWatts tokens into the agreement in 2023. Unfortunately, the employee didn’t provide a clear way to value the cryptocurrency in fiat terms. Thus it couldn’t enforce the payment in crypto.
Heaver added that this ruling demonstrated a more conventional perspective. By highlighting the need for hard proof when dealing with non-traditional payment methods.
But according to the attorney, things improved in 2024. When the court sided with the worker and mandated that the crypto salary be paid out in accordance with the employment contract, without turning it into fiat.
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