According to a report by Lexology, the Dubai Court of First Instance made a landmark ruling recognizing cryptocurrency as a valid form of salary payment on August 15, 2024, a significant departure from its 2023 stance.
The case involved an employee’s claim for unpaid wages, including EcoWatt tokens, under an employment contract. The court ruled in favor of the employee, ordering the payment to be made in EcoWatt tokens, reflecting a progressive shift in the UAE’s legal approach to digital currencies.
This decision underscores the UAE’s evolving acceptance of cryptocurrencies in employment contracts and highlights the courts’ adaptability to modern financial practices.
A year ago, the Dubai Court dismissed a case where an employee claimed unpaid wages in EcoWatt tokens, citing a lack of clear valuation in fiat currency.
However, in a recent ruling, the same court recognized cryptocurrency as a valid form of salary payment, signaling a broader interpretation of UAE labor laws regarding digital assets.
Dubai, an early adopter of crypto, has become a hub for crypto projects, with many companies paying employees in digital currencies. This ruling sets a new legal precedent for the use of crypto in employment contracts in the UAE.
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