In a landmark decision, the Dubai Court of First Instance has officially recognized cryptocurrency as a valid form of salary payment under employment contracts. This ruling marks a significant shift in the United Arab Emirates’ legal approach to digital currencies, reflecting the growing acceptance of crypto within the country’s economic and legal framework.
The case, identified as number 1739 of 2024, involved an employee who sued their employer for failing to pay wages, wrongful termination compensation, and other benefits. The employment contract in question specified a monthly salary that included both fiat currency and 5,250 EcoWatt tokens. The dispute arose when the employer failed to deliver the crypto portion of the salary for six months.
In contrast to a similar case in 2023, where the court denied a crypto payment claim due to the lack of precise valuation in fiat terms, this year’s ruling demonstrates a more progressive stance. The court not only acknowledged the inclusion of cryptocurrency in the employment contract but also ordered the payment of the salary in EcoWatt tokens without requiring conversion to fiat currency.
UAE lawyer Irina Heaver, a partner at NeosLegal, commented on the ruling, stating that it highlights the evolving nature of financial transactions within the Web3 economy. She noted that the decision reflects a broader acceptance of digital currencies in employment contracts and could pave the way for further integration of crypto in everyday financial dealings across the UAE.
The ruling is seen as a positive precedent, reinforcing that wages—whether paid in fiat or cryptocurrency—are the rightful entitlement of employees. Heaver added that this decision is a significant step toward the UAE’s ambition to become a leader in the digital economy.