Crypto provisions in employment contracts may be enforceable

At a glance

• Following a Dubai Court decision which ruled that an employee's dues were to be paid in both dirhams and cryptocurrency, as per their contract, the UAE is set to integrate cryptocurrency into daily transactions.
• To use crypto currencies businesses, must adapt their payment systems to accept cryptocurrencies, and residents would have to ensure compliance with the legal framework governing digital transactions.

The UAE is set to integrate cryptocurrency into daily transactions, allowing residents to pay bills, traffic fines, and receive salaries in digital currencies. Residents and businesses across the UAE, will be able to use of cryptocurrencies for utility bills, groceries, and other payments. 

The legal precedent was set by a Dubai court when it ruled that an employee's dues were to be paid in both dirhams and cryptocurrency, as per their contract. To use crypto currencies businesses, must adapt their payment systems to accept cryptocurrencies, and residents would have to ensure compliance with the legal framework governing digital transactions.

Employers who are subject to the Wages Protection System must however continue to pay salaries via that platform and there is no mechanism for payment of salaries via cryptocurrency using the Wage Protection System.