In a groundbreaking judicial turn of events in the United Arab Emirates, the Dubai Court of First Instance has acknowledged cryptocurrency as a valid form of salary payment under legal employment contracts. This significant development was shared by Irina Heaver, a partner at the UAE-based law firm NeosLegal.
Heaver divulged that this latest ruling marked a departure from the court’s previous judgment in 2023, where a similar claim saw rejection due to the indeterminate valuation of the cryptocurrency involved. According to Heaver, the court’s new stance exemplifies a “progressive approach” towards the integration of digital currencies within the nation’s legal and economic framework.
The involved case was filed by an employee who had not received their salary, due benefits, and compensation for wrongful termination. The worker’s contract defined a monthly remuneration composed of a fiat salary and 5,250 EcoWatt tokens. The controversy originated from the employer’s failure to pay the crypto part of the employee’s salary for six months.
Heaver noted that, in 2024, the court took the bold step of favoring the employee and mandated the payment of the cryptocurrency salary without requiring its conversion into fiat currency. “This decision echoes an expanded acceptance of cryptocurrency in employment agreements and emphasizes the court’s recognition of the changing nature of the Web3 financial transactions,” Heaver stated.
Furthermore, Heaver stated that the ruling could spur greater integration of digital currencies into routine financial transactions, thereby promoting a more inclusive and innovative business environment within the UAE. She emphasized that wages, whether paid in fiat or cryptocurrency, are a legitimate employee entitlement for their agreed work commitment. This court decision marks a substantial stride in the UAE’s ongoing efforts to establish itself as a leading digital economy.