The Al Ain Court of First Instance has ordered a former employee to pay Dh30,000 in compensation after he unlawfully refused to return a company-owned vehicle following the termination of his employment. The court ruled that retaining the vehicle as leverage during a labour dispute amounted to an illegal act that deprived the company of its property and caused material damage.

The company had filed a civil lawsuit seeking the return of the vehicle, daily rental compensation of Dh100 for each day the car was withheld, and Dh50,000 in damages for the disruption caused to its business operations.

Employee Refused to Return Company Car

According to court records, the dispute arose after the company ended the employee's contract and repeatedly requested the return of the assigned vehicle. Instead of complying, the former employee parked the vehicle at his residence and refused to hand it over.

The employee claimed he was holding the car because the company had not paid his final settlement and end-of-service benefits, arguing that the vehicle served as security until his dues were settled.

The employee argued that:

He had not received his final settlement.
His end-of-service benefits remained unpaid.
The vehicle was being held as security until payment was made.

Court Rejects Employee's Defence

The court dismissed the employee's defence, stating that UAE law does not permit workers to retain company assets to resolve employment disputes. It emphasized that labour-related claims must be pursued through the Ministry of Human Resources and Emiratisation (MoHRE) rather than by withholding employer property.

The judge found that the employee's actions caused direct financial harm by preventing the company from using its vehicle.

The court ruled that:

• Company assets cannot be withheld during labour disputes.

• Employees must follow legal channels to claim unpaid dues.

• The former employee must pay Dh30,000 in compensation.

• He is also responsible for the company's litigation and legal costs.

The ruling reinforces the importance of resolving employment disputes through the appropriate legal process while protecting the rights of both employers and employees under UAE law.

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