Labor Cassation Judgment on Court Jurisdiction for Workers Without Permits

Judgment summary

An employee sued his employer for AED 400,000 in unpaid wages and other dues. The Court of First Instance awarded him AED 332,000. The Court of Appeal overturned this, ruling the labor court lacked jurisdiction because the employee did not have a work permit. The employee appealed to the Court of Cassation. The Court of Cassation found that the appeal court erred. It held that labor courts have broad jurisdiction to hear all labor-related claims, regardless of whether the worker has a formal permit. However, it clarified that while the court has jurisdiction, the protections of the UAE Labor Law do not apply to workers who have not obtained the required permits. Instead, the dispute must be resolved according to the principles of the Civil Law. The Court of Cassation therefore overturned the appellate judgment, affirmed the labor court's jurisdiction, and remanded the case to be decided on its merits under the Civil Law.