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The Kingdom of Saudi Arabia's (KSA) employment environment has witnessed extensive development in the first six months of 2024.

A Dubai Court of Cassation ruling confirms that UAE employers cannot escape labour law obligations simply because formal MOHRE employment contracts were never executed. In a dispute involving AED 688,000 in claims, the court held that employment relationships may be proven through all legally recognised evidence, and that regulatory non-compliance by employers does not eliminate employee rights under UAE labour law.

A recent Dubai Court of Cassation decision offers an important warning for employers operating modern remuneration structures in the United Arab Emirates. As compensation models become increasingly sophisticated, employment disputes may no longer be determined solely by contractual drafting.

The United Arab Emirates (UAE or Emirates) has come a very long way from its beginnings as a regional trading hub with an economy dominated by pearl harvesting, fishing and local agricultural products.