Dubai has taken a remarkable crypto step. The court has officially recognized the payment of salaries in crypto as legal and binding. This is a remarkable change from the previous one, when a similar claim was rejected because the value of the cryptocurrency used could not be accurately determined.
Ruling given in case number 1739
Irina Heaver, partner at the law firm NeosLegal in the United Arab Emirates (UAE), sees the recent court ruling as a “progressive step” in the integration of digital assets into the country’s legal and economic structures.
The ruling follows a case in which an employee sued his employer for not paying his salary. The employee’s employment contract specified a monthly payment in fiat currency, supplemented with 5,250 EcoWatt crypto tokens. The problem arose when the employer was unable to pay the agreed tokens for six months.
In 2023, the court acknowledged that the tokens were part of the contract, but rejected the enforcement of payment in crypto, because the employee could not demonstrate how the value of the tokens should be determined in fiat.
However, in the new ruling of 2024, the court ruled in favor of the employee and ordered the employer to pay the salary in crypto, as agreed in the contract. Heaver responded by saying:
“This decision reflects a broader acceptance of cryptocurrencies in employment contracts and highlights the court’s recognition of the changing nature of financial transactions within the Web3 economy.”
UAE Makes Major Crypto Move
This decision has far-reaching implications for crypto adoption in the UAE. Employees can now choose to be paid in crypto, which could further encourage the integration of crypto into daily financial life.
“This ruling confirms that when an employment contract contains such terms, both the company and the employee must abide by them. It is encouraging to see the court recognize that wages, regardless of whether they are paid in fiat or cryptocurrency, are the rightful property of the employee for the work performed,” Heaver said.
She concludes that this ruling is an important milestone in the UAE’s ambition to become a leader in the digital economy.
Source: https://newsbit.nl/dubai-hof-erkent-salarisbetaling-in-cryptovaluta-als-wettig-onder-arbeidsovereenkomsten/
