In a recent significant ruling, the Dubai Court of First Instance has recognized the validity of cryptocurrency salary payments, a notable shift from the court’s stance in 2023. The case, identified as number 1739 of 2024, involved an employee whose contract stipulated a salary in fiat currency and 5,250 EcoWatt tokens. The employer failed to pay the tokenized portion of the salary for six months, prompting the employee to file a lawsuit.
In 2023, the court had rejected a similar lawsuit, citing the lack of a clear method for valuing cryptocurrency in fiat terms. However, in 2024, the court took a more progressive approach, ruling in favor of the employee and ordering payment of the cryptocurrency salary as per the contract, without the need for conversion to fiat.
Irina Heaver, a partner at NeosLegal law firm, interpreted this decision as a step forward in the integration of cryptocurrencies into the UAE's legal framework. She stressed that the ruling reflects a broader acceptance of cryptocurrencies in employment contracts and underlines the consistency in the application of the Civil Transactions Law and Federal Decree-Law No. 33 of 2021.
Heaver also noted that this decision sets a positive precedent for the adoption of digital currencies, promoting a more inclusive and innovative business environment. The ruling states that both companies and employees must comply with contractual clauses related to cryptocurrencies, marking an important step towards consolidating the UAE as a leader in the digital economy.
SOURCE:cointelegraph