TechFlow news — On August 16, according to Cointelegraph, the Dubai Court of First Instance acknowledged in a significant update to the UAE's legal framework on cryptocurrencies that paying salaries in cryptocurrency is legally valid within employment contracts.
Irina Heaver, partner at NeosLegal, noted that ruling No. 1739 of 2024 reflects a shift in the court's stance—contrasting with a 2023 decision where similar claims were rejected due to unclear cryptocurrency valuations—demonstrating the UAE’s progressive approach toward integrating digital currencies into its legal and economic systems.
The case involved an employee suing his employer for unpaid wages, compensation for wrongful termination, and other benefits. The employment contract stipulated monthly payments in fiat currency and 5,250 EcoWatt tokens. Previously, while the court recognized the inclusion of EcoWatt tokens in the contract, it did not enforce the crypto portion due to the lack of a clear fiat valuation method. In 2024, the court ruled in favor of the employee, upholding the right to receive the cryptocurrency component as specified in the contract without conversion into fiat currency.
