A Dubai court has boldly declared that cryptocurrency can be used as a legal form of salary, setting the stage for a revolutionary shift in how workers in the UAE are paid.

Dubai Court Endorses Crypto Wage Payments

The Dubai Court of First Instance has made a major development in the UAE's judicial attitude to cryptocurrency by recognizing cryptocurrency wage payments as acceptable under employment contracts.

According to Irina Heaver, a partner at the UAE law company NeosLegal, the decision in case number 1739 of 2024 represents a change in attitude from the court's previous position in 2023, when a comparable claim was rejected due to the absence of specific valuation for the cryptocurrency in question.

Progressive Approach to Crypto in Employment Contracts

A "progressive approach" to incorporating digital currencies into the country's legal and economic structure, according to Heaver.

An employee, according to Heaver, sued their company, claiming nonpayment of salary, wrongful termination compensation, and other benefits, Cointelegraph shares.

The employee's job contract specified a monthly wage of 5,250 EcoWatt tokens in addition to fiat currency. The disagreement arises because the company has failed to pay the employee a minimal amount of their wage for the past six months.

Court Acknowledges Crypto in Wage Dispute

The court acknowledged the inclusion of EcoWatts coins in the contract in 2023. However, the employee's failure to offer a transparent means of pricing the cryptocurrency in fiat terms meant that it could not be used to enforce the payment.

Something Heaver stated was:

“This decision reflected a traditional viewpoint, emphasizing the need for concrete evidence when dealing with unconventional payment forms.”

However, according to the attorney, things changed in 2024 when the court "took a step forward," sided with the worker, and mandated that the crypto income be paid out in accordance with the contract without turning it into fiat. Something Heaver stated was:

“This decision reflects a broader acceptance of cryptocurrency in employment contracts and highlights the court’s recognition of the evolving nature of financial transactions within the Web3 economy.”

The fact that the court consistently applied legal principles in wage determination, according to Heaver, as both verdicts relied on the UAE Civil Transactions Law and Federal Decree-Law No. 33 of 2021.

Heaver claims that the ruling also promotes the widespread use of digital currencies in regular commerce by setting a good precedent. The attorney thinks this promotes a more welcoming and creative workplace. Something Heaver stated was:

“This ruling affirms that if an employment contract includes such terms, both the company and the employee must honor them. It is reassuring to see the court recognize that wages, whether paid in fiat or cryptocurrency, are the rightful entitlement of the employee for their agreed-upon work.”

Landmark Ruling Boosts Crypto Adoption in UAE

According to Heaver, this is great news for workers and a major milestone on the road to digital economic leadership for the United Arab Emirates. ​