Dubai Court Recognizes Crypto Payments for Salaries in Landmark Ruling

The Dubai Court of First Instance has made a groundbreaking decision. They recognized crypto payments for salaries in employment contracts. This landmark ruling, shared by the Wasel & Wasel law firm, marks a significant shift in the UAE's view on digital currencies.

Previously, in 2023, the same court rejected a similar case. The reason? The employee couldn’t provide a clear valuation of the cryptocurrency involved.

In this recent case, the plaintiff claimed wrongful termination and unpaid wages. The employment contract stated a monthly salary in traditional currency, plus 5,250 EcoWatt tokens, a type of cryptocurrency. The employer argued that paying salaries in crypto wasn’t legally binding.

This time, the court sided with the employee. They not only acknowledged the legality of crypto payments but also ordered the employer to pay in EcoWatt tokens instead of converting them to fiat currency.

This ruling aligns with Dubai's goal to become a global crypto hub. The city has a tailored regulatory framework for digital asset companies, as noted by DL News. Plus, the Dubai International Financial Centre offers an economic free zone, allowing businesses to operate with fewer regulations.

The ruling represents a significant change in the court's approach. It highlights a greater acceptance of cryptocurrency as a valid form of payment. It also emphasizes the importance of honoring contracts, provided they are clear and agreed upon by both parties, and comply with public policy.

By enforcing crypto payments as stated in contracts, the court sets a precedent. This decision may encourage further integration of digital currencies in various sectors, beyond just employment.