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On August 15, the Dubai Court of First Instance issued a historic ruling, confirming the legality of paying salaries in Bitcoin and crypto according to employment contracts, marking a significant acceptance of digital currencies within the UAE’s judicial system.
The case involved an employee who alleged that they did not receive their salary, were wrongfully terminated, and did not receive all labor benefits. The employment contract included a cash salary and 5,250 EcoWatt tokens. The court ordered the employer to pay the salary in crypto due to the failure to provide proof of payment.
The defendant argued that paying salaries in EcoWatt tokens was not legal and that the termination was justified. However, the court determined that the contract specified payment in crypto, and the employer could not prove that payment had been made.
This creates a new legal precedent and promotes the acceptance of digital currencies, showing that the UAE is moving towards a deeper integration of crypto into its legal and economic frameworks.
This ruling differs from a 2023 case when the court rejected a claim involving EcoWatt tokens due to unclear value. The 2024 decision indicates that the court’s stance on digital currencies has changed.
