ABU DHABI // An Arab man who left his job to join a hotel has won Dh60,000 in compensation after the hotel failed to honour his contract.
When the hotel did not live up to its end of the bargain, the man was left without a job, in breach of residence law and he failed to honour a bank agreement. He ended up being banned from working in the UAE for six months, in addition to losing the flight home he was entitled to from his previous employer.
The man brought a case against the hotel at Abu Dhabi Civil Court, claiming compensation for the moral and material damages resulting from the hotel’s breach of the employment agreement.
The hotel argued that its breach of the agreement was a result of the man’s inability to work in the UAE for six months and that he did not sign the employment contract or step forward to take up his post.
It also said the employment procedures require obtaining specific approvals, licences and visas, as well as undergoing a medical examination, all of which the man failed to do.
The Court of First Instance ruled in favour of the hotel.
However, the man appealed and submitted a document showing his signature on the employment contract along with the electronic correspondence between both parties to the Court of Appeal. The emails prove that he notified the hotel of his resignation, of his last day at his previous job and of the cancellation of his residence permit.
The Court of Appeal then ruled in favour of the Arab man and told the hotel to pay Dh60,000 to him for the material and moral damages he suffered from losing his livelihood, as well as the expenses he has incurred in suing the hotel.
newsdesk@thenational.ae
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1. Domestic VAT refund amendments: request your refund within five years
If a business does not apply for the refund on time, they lose their credit.
2. E-invoicing in the UAE
Businesses should continue preparing for the implementation of e-invoicing in the UAE, with 2026 a preparation and transition period ahead of phased mandatory adoption.
3. More tax audits
Tax authorities are increasingly using data already available across multiple filings to identify audit risks.
4. More beneficial VAT and excise tax penalty regime
Tax disputes are expected to become more frequent and more structured, with clearer administrative objection and appeal processes. The UAE has adopted a new penalty regime for VAT and excise disputes, which now mirrors the penalty regime for corporate tax.
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6. Further transfer pricing enforcement
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7. Limited time periods for audits
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9. Reduced compliance obligations for imported goods and services
Businesses that apply the reverse-charge mechanism for VAT purposes in the UAE may benefit from reduced compliance obligations.
10. Substance and CbC reporting focus
Tax authorities are expected to continue strengthening the enforcement of economic substance and Country-by-Country (CbC) reporting frameworks. In the UAE, these regimes are increasingly being used as risk-assessment tools, providing tax authorities with a comprehensive view of multinational groups’ global footprints and enabling them to assess whether profits are aligned with real economic activity.
Contributed by Thomas Vanhee and Hend Rashwan, Aurifer
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