In recent times, digital currencies have gained immense popularity. The digital currencies like cryptocurrencies have become a vital part of the existing financial markets around the world. Besides, different nations, individuals, and companies have begun using digital currencies. Digital currencies can be used to pay off salaries which has increased the questions regarding the legalities of the digital space.
The UAE is foremost in accepting technological advancements and similarly, the same situation lies here. The UAE has heartedly accepted digital currencies by recognizing the crypto currencies and other digital modes of exchange. Capital lawyers in UAE, are usually found experts for the understanding of crypto concepts. Capital lawyers means the lawyers servicing in Emirate of Abu Dhabi. Emirate of Abu Dhabi is the capital of UAE, therefore they are also called as capital lawyers in United Arab Emirates.
- In recent times, the Dubai court has passed a notable ruling concerning the permission to pay salaries via digital currencies. As per the latest developments, the Dubai court has passed a historic judicial judgment. According to the consequential ruling, the company needs to pay off the employee’s entitlement through cryptocurrency. Furthermore, this decision appeared after an employee filed for an unfair dismissal with Dubai Courts. The lawsuit was taken up by the Dubai court and a historic decision was made.
As per ruling
As per the ruling, the company has agreed to pay the employee’s salary as per the employment contract. However, it was agreed that the salary of the employee be paid in digital currency rather than the traditional mode of payment. It was specified that the ‘Equat’ coin would be used. It shall be considered to be the local currency in exchange for Emirati Dirham. Crypto legal services are also available in UAE.
Nevertheless, a dispute has aroused as the company fails to meet its obligation. The company did not pay the employee the ‘Equat’ cryptocurrency. The Dubai court announced the decision in favor of the employee. However, the Dubai court ruling has ordered the company to immediately pay the remaining balance. The payment is made in ‘EQUAT’. The amount of ‘Equat’ must equal the local currency.
Example: Illustration
The 6 months payment was due to the company in the case of an unfair dismissal case. Dubai court ordered compensation to be paid to the employee for 6 months.
This was an exemplary Dubai Court ruling which depicts the significant development in the Digital financial market. This recent initiative explains the judicial interaction with cryptocurrencies.
Nevertheless, the laws and regulations vary from nation to nation. The different countries are accepting digital markets. UAE made the decision that underscores the need for a party to honor the contract with cryptocurrencies. Besides, the terms of the agreement are upheld with the digital currencies in a more fair, just, and equitable way.
Dubai Court Ruling
Dubai Court ruling has passed the eminent Judgment that delayed salary must be paid to the employee in the form of ‘Equat’. This was done according to the employment contract. It also stipulated the payment equivalent to Emirati Dirham. Added, this judgment honored the contractual obligations between the employee and employer. It further ensures that employee rights are enacted while the use of digital currencies.
Prominent Ruling of Dubai Court
This prominent ruling of the Dubai Court will have significant implications and Consequences for the financial markets of the UAE. This crucial move paves the way for regulating digital currencies in financial transactions. It also undermines the UAE’s commitment to a progressive, coherent, and modern financial system. Moreover, the ruling highlights the significance of categorically mentioning the payment terms within the employment contract or agreement.
This will ensure the rights of all parties to remain protected. The Dubai court ruling reflects the flexibility of the UAE judicial system in accepting the new modes of payment other than Emirati dirham.
Legal Development
It also addresses the legal developments regarding technological progress. The Noteworthy Dubai Court ruling in this cryptocurrencies-related case has strengthened the use of digital currencies in the country. This demonstrates judicial communication with technological advancement. Besides, it also displays the acceptance of state-of-the-art technology within the UAE financial market. Furthermore, this ruling also explains the importance of contractual compliance. It also safeguarded the rights of the employee. Dubai Court Ruling incorporated the technology development and depicts a step towards better and modern regulation of cryptocurrency.
Last but not the least, UAE has shown its keen interest and dedication towards cryptocurrency that can be used in the country’s financial transactions.
