Dubai Court Recognizes Cryptocurrency as Legal Form of Salary Payment

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by Giorgi Kostiuk

2 years ago

Made with AI

  1. Court Decision
  2. Case Details and Arguments
  3. Significance of the Decision


    4. The Dubai Court of First Instance confirmed the validity of using cryptocurrency for salary payments, indicating a growing acceptance of digital currencies in the UAE.

    Court Decision

    The court delivered its verdict in case number 1739 of 2024 (Labour). The plaintiff alleged non-payment of salary, unjustified termination, and other employment-related rights. The contract stipulated a monthly remuneration in traditional currency and 5,250 EcoWatt tokens—a type of cryptocurrency. The court ruled in favor of the plaintiff, compelling the employer to pay the outstanding income in EcoWatt tokens due to the employer's inability to substantiate the payment.

    Case Details and Arguments

    The employer argued that the plaintiff's termination was justified and that the remuneration in EcoWatt tokens lacked legal enforceability. However, the court upheld the contractual obligations and ruled that the salary be paid in cryptocurrency. It is noteworthy that this decision differs from a similar case in 2023, where the court rejected a claim related to EcoWatt tokens due to the plaintiff's inability to accurately determine their value.

    Significance of the Decision

    The court's decision emphasizes the importance of clear contractual agreements and the UAE’s readiness to adapt to contemporary financial norms. The determination and payment of wages are governed by Article 912 of the UAE Civil Transactions Law and Federal Decree-Law No. (33) of 2021.

    The Dubai Court of First Instance's ruling on the legality of cryptocurrency salary payments highlights significant changes in financial regulation and UAE's adaptation to new economic realities.

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