By Mohamed Ghanem
Lawyer I LLM I Lecturer I Speaker I DIAC Arbitrator
February 17, 2026
In a recent judgment, the Dubai Court of Appeal reaffirmed an important legal principle:
👉 A malicious absconding complaint that deprives an employee of a confirmed job opportunity may give rise to compensation on the basis of loss of profit.
The Court held that it was established that the appellant had accepted a job offer addressed to him by a company on 31/7/2025. The Court found that the malicious absconding complaint filed by the respondent against the appellant was the direct cause of the loss of his opportunity to commence employment with the company that had issued the offer.
The Court further considered that this constituted “loss of profit”, as the appellant had hoped to obtain that income based on reasonable grounds. While the opportunity itself was probabilistic in nature, the loss of that opportunity was certain and therefore warranted compensation.
Exercising its discretionary authority to assess damages, the Court estimated the compensation at the equivalent of one month’s salary (….. AED) and awarded it to the appellant, thereby amending the appealed judgment accordingly.
đź’ˇ Legal Insight
This judgment reinforces a key principle in UAE civil liability:
When a wrongful act deprives a person of a genuine and reasonably expected economic opportunity, compensation may be awarded under the doctrine of loss of profit. False absconding complaints are not merely administrative filings — they may carry real financial consequences.