Dubai Court Allows Salaries to Be Paid in Cryptocurrency
Date: 2024-08-19 Author: Oliver Abernathy Categories: IN WORLD
Irina Khiver, partner at NeosLegal in the UAE, noted that the ruling in case No. 1739 of 2024 represents a progressive departure from the court’s previous position in 2023, when a similar claim was dismissed due to a lack of an accurate valuation of the cryptocurrency.
According to Khiver, the court has shown a progressive approach to integrating digital currencies into the country’s legal and economic system.
The case involved an employee who filed a lawsuit against his employer for non-payment of wages, severance pay, and other benefits. The employee’s employment contract stipulated a monthly salary in fiat money and 5,250 EcoWatt tokens. The employer failed to pay the salary in tokens for six months, which led to the dispute.
In 2023, the court upheld the inclusion of EcoWatt tokens in the employment contract, but refused to pay in cryptocurrency due to the lack of a clear valuation of the tokens in fiat money. However, in 2024, the court changed its position, ruling to pay the salary in cryptocurrency as per the contract without converting it.
Heaver noted that this decision demonstrates the wider acceptance of cryptocurrencies in employment contracts and adaptation to the changing financial environment in the Web3 era.
She also emphasized that this sets a positive precedent for the further integration of digital currencies into financial transactions and contributes to the innovative business environment in the UAE.
This decision, according to Heaver, is an important step towards making the UAE a leader in the digital economy and a significant victory for workers.
