The post UAE crypto salary ruling a recognition of contractual agreement more than a validation of crypto appeared on BitcoinEthereumNews.com.

A recent Dubai court ruling ordered a company to pay an ex-employee outstanding dues in UAE currency as well as in crypto. The ruling has raised questions about whether the UAE now allows salaries to be paid in cryptocurrencies. Speaking with the Managing Partner of the UAE law firm, Wasel & Wasel, Cryptopolitan learns that the court ruling is a recognition of the specific terms agreed upon in the contract rather than a broader validation of crypto as a currency within the UAE’s legal framework. The dispute centred on the failure to pay EcoWatt The dispute centred on the defendant’s failure to pay the EcoWatt token portion of the plaintiff’s salary for six months and the alleged wrongful termination of their employment. The court ruled in favour of the employee, not only recognizing the validity of payment in cryptocurrency but also ordering the payment to be made in EcoWatt tokens rather than converting it into fiat currency. The court recognized and enforced that crypto was a valid form of remuneration, despite the traditional payment norms that typically involve fiat currencies. The court’s decision in 2024 was based on the principle that wages are a right of the employee for the work agreed upon. The court noted that as per Article 912 of the Civil Transactions Law, wages are a right of the worker against the employer in return for the agreed work and the provisions of Article 22 of Federal Decree-Law No. (33) of 2021 on the Regulation of Labour Relations and Article 16 of the Cabinet Resolution No. 1 of 2022 concerning the Executive Regulations of this Decree-Law provide that the employer is obligated to determine the amount and type of wage in the employment contract, and if not, the court shall determine it. The Wasel & Wasel law…

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Filed under: News - @ August 24, 2024 12:20 pm