The photo has been used for illustrative purposes.

Gulf Today, Staff Reporter

In a historic decision, the Dubai Court of First Instance said that salary payments could be made in cryptocurrency as valid under employment contracts in UAE.

The court took that decision in a case where employees accused their employer of refraining to pay more than Dhs5,000  tokens, which had been part of their contractual agreement.

The employer also, whom the employees also alleged fired them improperly, did not pay them the crypto portion of their salary for six months.

The Dubai Court of First Instance said that crypto currency can be a valid form of salary and ordered the employer to pay it, as agreed upon in the employment contract.

In 2023, the same court reportedly looked into a similar complainant filed by employees claiming that employer refrained to pay them using the same EcoWatt tokens.

The city of Dubai was among others that started in 2016 the Blockchain Strategy and thanks to its favorable tax regulations and booming venture capital investment scene, the city had become favorite for crypto projects.

Many companies like Binance, OKX, and Crypto.com have a significant presence in the city of Dubai and pay their employees in crypto.

The decision rendered in a Labour case number 1739 of 2024, represents a notable shift from a previous judgment by the same court in 2023.

In 2023, a similar claim involving cryptocurrency was denied due to the employee’s failure to provide a precise valuation of the digital currency.

Experts have highlighted the ruling as a “progressive approach” to integrating digital currencies into UAE law.

The court’s disposition is particularly noteworthy for its recognition and enforcement of cryptocurrency as a valid form of remuneration in the emirate.