An Abu Dhabi court has rejected a Dh100,000 compensation claim filed by an employee who alleged wrongful termination following his acquisition of a UAE Golden Visa. The employee accused his employer of failing to re-issue his employment documents, leading to financial losses and missed opportunities.
The dispute centered on the employee's claim that after obtaining his UAE Golden Visa in August 2025, his existing employment contract, residency visa, and work permit were temporarily cancelled. He asserted that the company had assured him a new contract and work permit would be issued upon completion of the Golden Visa process, a commitment which, according to him, was not fulfilled.
Employee Alleges Significant Financial Harm
The employee argued that the company's failure to issue a new contract left him without unemployment insurance benefits under the UAE’s Involuntary Loss of Employment (ILOE) scheme. His claim for these benefits was rejected because his original contract officially ended in August 2025, and no replacement was registered within the permitted period.
Furthermore, the employee alleged he missed a job opportunity in Saudi Arabia, which offered a monthly salary of Dh45,975, and remained unemployed due to the company's actions. He sought Dh100,000 in compensation for these alleged losses.
Company Denies Wrongdoing, Cites Lack of Evidence
In response, the employer denied the allegations, stating that the termination was lawful and that the employee had received proper notice in accordance with UAE labor regulations. The company further contended that the employee failed to provide any evidence substantiating his claimed financial losses or the existence of the alleged job opportunity in Saudi Arabia.
Court Finds No Employer Liability
The Abu Dhabi Family, Civil and Administrative Claims Court ultimately dismissed the compensation request. The court ruled that the employee could not establish a legal obligation on the part of the company to issue a new employment contract after the Golden Visa was granted. The court stated, "The employee claimed that the company harmed him by failing to issue a new contract after his Golden Visa, but he did not prove this agreement or any actual damage, so his compensation claim cannot be accepted."
The court also noted that the cancellation of the original contract and work permit was part of a mutual arrangement to facilitate the Golden Visa process and did not, by itself, constitute wrongful action by the employer. The employee's claims regarding the lost Saudi job opportunity and rejected unemployment benefits were also found to be unsubstantiated. Consequently, the compensation claim was dismissed, and the employee was ordered to bear the court costs.