Golden Visa dispute: Abu Dhabi court rejects Dh100,000 wrongful termination claim by employee
The employee claimed that he was left without a new work contract, lost access to unemployment insurance benefits, and missed a job opportunity in Saudi Arabia because the company failed to reissue his employment documents
- Jul 29, 2026,
- Updated Jul 29, 2026 10:35 AM IST
An Abu Dhabi court has dismissed a Dh100,000 compensation claim filed by an employee who alleged that his employer wrongfully ended their employment relationship after he obtained a UAE Golden Visa. The employee claimed that he was left without a new work contract, lost access to unemployment insurance benefits, and missed a job opportunity in Saudi Arabia because the company failed to reissue his employment documents, according to Khaleej Times.
Golden Visa application led to contract cancellation
The employee had entered into a two-year employment contract with the company on July 11, 2024. In August 2025, he obtained a UAE Golden Visa, a process that required the temporary cancellation of his existing employment contract, residency visa and work permit.
According to his claim, the company had assured him that a new employment contract and work permit would be issued once the Golden Visa process was completed. However, the employee said the company did not follow through with that commitment.
When he later attempted to claim benefits under the UAE’s Involuntary Loss of Employment (ILOE) insurance scheme, the insurer informed him that his employment contract had officially ended on August 11, 2025, and no replacement contract had been registered. As the claim was filed after the permitted period, his insurance benefit request was rejected.
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Employee claimed financial losses
The employee approached the court, arguing that the company’s failure to issue a new contract amounted to wrongful termination. He claimed he lost his ILOE benefits, missed a Saudi Arabia job opportunity offering a monthly salary of Dh45,975, and remained unemployed due to the company’s actions.
Based on these claims, he sought Dh100,000 in compensation.
Company denies wrongdoing
The employer rejected the allegations, stating that the termination was lawful and that the employee had been given proper notice before completing his notice period in accordance with UAE labour regulations.
The company also argued that the employee had failed to provide evidence proving either financial losses or the alleged Saudi employment opportunity.
Court finds no proof of employer liability
The Abu Dhabi Family, Civil and Administrative Claims Court dismissed the compensation request, ruling that the employee could not establish that the company was legally obligated to issue a new employment contract after the Golden Visa was granted.
"The employee claimed that the company harmed him by failing to issue a new contract after his Golden Visa, but he did not prove this agreement or any actual damage, so his compensation claim cannot be accepted," the court said.
The court noted that the cancellation of the original contract and work permit was carried out as part of a mutual arrangement to facilitate the Golden Visa process and could not, by itself, be considered evidence of wrongful action by the employer.
The court also found that the employee failed to substantiate his claims regarding the lost Saudi job opportunity and rejected unemployment insurance benefits. The compensation claim was dismissed, and the employee was ordered to bear the court costs.
An Abu Dhabi court has dismissed a Dh100,000 compensation claim filed by an employee who alleged that his employer wrongfully ended their employment relationship after he obtained a UAE Golden Visa. The employee claimed that he was left without a new work contract, lost access to unemployment insurance benefits, and missed a job opportunity in Saudi Arabia because the company failed to reissue his employment documents, according to Khaleej Times.
Golden Visa application led to contract cancellation
The employee had entered into a two-year employment contract with the company on July 11, 2024. In August 2025, he obtained a UAE Golden Visa, a process that required the temporary cancellation of his existing employment contract, residency visa and work permit.
According to his claim, the company had assured him that a new employment contract and work permit would be issued once the Golden Visa process was completed. However, the employee said the company did not follow through with that commitment.
When he later attempted to claim benefits under the UAE’s Involuntary Loss of Employment (ILOE) insurance scheme, the insurer informed him that his employment contract had officially ended on August 11, 2025, and no replacement contract had been registered. As the claim was filed after the permitted period, his insurance benefit request was rejected.
DO CHECKOUT: Emirates to now accept crypto payments for flights as airline expands digital booking options: Details here
Employee claimed financial losses
The employee approached the court, arguing that the company’s failure to issue a new contract amounted to wrongful termination. He claimed he lost his ILOE benefits, missed a Saudi Arabia job opportunity offering a monthly salary of Dh45,975, and remained unemployed due to the company’s actions.
Based on these claims, he sought Dh100,000 in compensation.
Company denies wrongdoing
The employer rejected the allegations, stating that the termination was lawful and that the employee had been given proper notice before completing his notice period in accordance with UAE labour regulations.
The company also argued that the employee had failed to provide evidence proving either financial losses or the alleged Saudi employment opportunity.
Court finds no proof of employer liability
The Abu Dhabi Family, Civil and Administrative Claims Court dismissed the compensation request, ruling that the employee could not establish that the company was legally obligated to issue a new employment contract after the Golden Visa was granted.
"The employee claimed that the company harmed him by failing to issue a new contract after his Golden Visa, but he did not prove this agreement or any actual damage, so his compensation claim cannot be accepted," the court said.
The court noted that the cancellation of the original contract and work permit was carried out as part of a mutual arrangement to facilitate the Golden Visa process and could not, by itself, be considered evidence of wrongful action by the employer.
The court also found that the employee failed to substantiate his claims regarding the lost Saudi job opportunity and rejected unemployment insurance benefits. The compensation claim was dismissed, and the employee was ordered to bear the court costs.