An Abu Dhabi court rejected a Dh100,000 compensation claim by an employee who lost his job while switching to a Golden Visa. The ruling highlights the legal risks for expats cancelling work permits to secure long-term residency without solid written agreements.
Our retelling · details in the original publication
An Abu Dhabi court recently dismissed a lawsuit where an employee sought Dh100,000 in compensation from his employer. The worker claimed he suffered financial damages because the company wrongfully terminated his employment during his transition to a UAE Golden Visa. The case reveals that the employee signed a two-year contract starting July 11, 2024. In August 2025, he obtained the Golden Visa, which required temporarily cancelling his existing work contract, residency visa, and work permit. He argued that the employer agreed to issue a new employment contract and work permit after the Golden Visa was issued. However, the situation became complicated when he approached his insurer to claim benefits under the UAE's Involuntary Loss of Employment (ILOE) insurance scheme. The court ultimately rejected his claim for the Dh100,000 compensation. This situation highlights the importance of having clear, written agreements when modifying visa status to protect one's rights and insurance benefits. Employees must understand that cancelling a work permit can immediately affect their eligibility for schemes like ILOE. Readers should verify their contractual status before cancelling permits. Full details are available in the original publication.
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