Dubai's Court of First Instance has recognised cryptocurrency as a legally valid form of salary payment in employment contracts — a ruling that marks a significant milestone in the UAE's evolving approach to digital assets and labour law.
Dubai Court Rules on Crypto Salary in Case 1739 of 2024
The decision, numbered 1739 of 2024, was issued on 15 August 2024 and reported by UAE lawyer Irina Heaver, a partner at NeosLegal. Heaver described it as a sign of the Dubai judiciary's "progressive approach" to digital currency — a sharp contrast to the court's earlier position.
In 2023, a nearly identical dispute was dismissed. At that time, the court acknowledged that crypto tokens had been agreed upon as part of the employee's salary but refused to order payment on the grounds that it could not determine a reliable method for ascertaining the market value of crypto in fiat money. That ruling reflected the judiciary's traditional caution toward unconventional payment forms.
EcoWatt Tokens: The Case That Changed UAE Labour Law
The 2024 case centred on an employee whose employment contract specified a monthly salary in fiat currency plus 5,250 EcoWatt tokens. When the employer refused to pay the token portion of the salary for six months, the employee filed a claim for unlawful dismissal and unpaid wages.
This time, the court ruled decisively in the employee's favour. It held that the employer was obligated to pay the cryptocurrency salary exactly as agreed in the contract — without any requirement to convert the tokens into dirhams beforehand. The court grounded its decision in Article 912 of the UAE Civil Transactions Law and Federal Decree-Law No. 33 of 2021, which govern wage determination and payment.
What the Ruling Means for Crypto Employment Contracts in the UAE
Heaver called the judgment a turning point in how UAE law treats digital currency in the context of employment rights. As she explained:
> "This ruling holds the triumphant position that if an employment contract has such terms, then both the company and the employee have to obey them, whether wages are actual or cryptocurrencies."
The decision opens the door for broader use of crypto in everyday financial agreements and reinforces Dubai's stated goal of becoming the world's leading digital economy centre. For employers and employees alike, it establishes a clear principle: contractual terms involving cryptocurrency carry the same legal weight as those involving traditional fiat salaries.
The ruling is widely seen as a positive development for the region's growing Web3 economy and a signal that UAE jurisprudence is adapting to the realities of the blockchain era.
