Dubai Court Says Crypto Salary Payments Are Valid

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In a significant development in the United Arab Emirates’ approach to handling cryptocurrencies, the Dubai Court of First Instance has ruled that salary payments in crypto are valid under employment contracts.

This ruling, in case number 1739 of 2024, marks a shift from the court’s previous stance in 2023, where a similar claim was denied due to the lack of a precise valuation for the crypto involved.

According to Irina Heaver, a partner at UAE law firm NeosLegal, this decision suggests a progressive attitude towards incorporating digital currencies into the country’s legal and economic system.

The case involved an employee who filed a lawsuit against their employer for non-payment of wages, wrongful termination compensation, and other benefits.

The employee’s contract stated a salary in fiat and 5,250 EcoWatt tokens per month. The conflict arose when the employer was unable to pay the salary portion in tokens for six months.

In 2023, the court recognized the inclusion of the EcoWatt tokens in the contract, but did not enforce the payment in crypto as the employee did not specify a clear method for valuing the currency in fiat terms.