A compensation claim under UAE law is a legal action by which a person who has suffered material or moral harm seeks to recover damages, whether the harm arises from a breach of contract (contractual liability) or a wrongful act (tortious liability). This right is guaranteed by UAE civil law and related legislation, and the UAE judiciary is always keen to establish the rules of justice and restore rights to their owners by fully remedying the harm caused.
What Is the Legal Concept of Compensation in the UAE?
Compensation is legally defined as a financial penalty awarded to the injured party to remedy the harm suffered as a result of an unlawful act or a breach of an obligation. The UAE legislator regulates the rules of compensation primarily in the UAE Civil Transactions Law, whose general rules provide that "any harm caused to others obliges its doer, even if not of sound discretion, to compensate for the harm."
Types of Compensation Cases Under UAE Law
Numerous cases fall under the heading of compensation, depending on the nature of the dispute and the cause of the harm, most notably:
Compensation for Medical Errors
These arise from negligence or default on the part of medical staff or healthcare facilities, and their assessment is subject to the laws on medical liability and to the Higher Committee for Medical Liability, which determines the degree of fault and the physical or psychological harm suffered by the patient.
Compensation for Unfair Dismissal and Labour Disputes
If an employer terminates a worker's services in an arbitrary manner or in violation of the provisions of UAE labour law, the worker is entitled to claim financial compensation covering the damages of the dismissal, in addition to their other labour entitlements.
Compensation for Traffic Accidents and Serious Damage
This is among the most common types of cases, whereby anyone who has been involved in a traffic accident resulting in personal injuries, total or partial disability, or property damage is entitled to claim fair compensation from insurance companies or the direct party at fault.
Compensation for Breach of Contract (Contractual Liability)
When one of the parties refrains from performing its contractual obligations (whether in construction contracts, sale and purchase contracts, or commercial contracts), the injured party is entitled to resort to the judiciary to claim compensation for financial losses and loss of profit.
The Conditions Required for a Compensation Ruling
For the judge to accept a compensation claim and rule in favour of the claimant, the three fundamental elements of liability must be proven:
Fault (the harmful act)
The commission of an unlawful act or a breach of a legal or contractual duty.
Harm
The occurrence of an actual material loss (such as damage to property or lost opportunities) or moral or psychological harm (such as psychological pain or damage to reputation).
Causation
The existence of a direct and established causal link between the fault committed by the wrongdoer and the harm suffered by the victim.
How Judicial Compensation Is Calculated in the UAE
The assessment of the amount of compensation is subject to the discretionary authority of the judge in the UAE courts, who relies on several key criteria in making that assessment:
The extent of direct material damage: The actual loss suffered by the injured party and the profit they were deprived of.
Moral and non-material harm: Including the psychological pain it causes or the damage to reputation and standing.
The circumstances of the incident: As well as the financial and social position of both parties.
Future and prospective harm: It should be noted that compensation includes future and prospective harm where its occurrence is certain.
Procedures for Filing a Compensation Claim
To ensure the success of a compensation case and achieve the best results, it is recommended to follow these steps:
Gathering evidence and documents: Such as technical reports, contracts, police reports, and financial invoices proving the harm.
Attempting an amicable settlement: Where possible, before resorting directly to litigation.
Engaging a specialised lawyer: To precisely draft the statement of claim, and to determine the final requests supported by the relevant legal documents.
Filing the case: Registering the case before the competent court and paying the approved court fees.
Frequently Asked Questions About Compensation Cases in the UAE
Does compensation cover moral and psychological damage?
Yes, UAE law recognises moral harm (such as psychological pain and damage to honour or standing) and permits a ruling for compensation for it, particularly in cases involving crimes and infringements of personal rights.
What is the limitation period for a compensation claim?
A compensation claim arising from an unlawful act lapses upon the expiry of three years from the day the injured party became aware of the harm and of the person responsible for it, or upon the expiry of fifteen years from the day the unlawful act occurred, whichever is earlier (in accordance with the Civil Law), with certain exceptions relating to criminal offences.
| Article | Topic |
|---|---|
| Medical Malpractice in UAE Law | The legal concept of medical malpractice and how liability is established |
| Defamation in UAE Law | The legal concept of defamation and compensation for reputational harm |
Conclusion
Compensation claims form an essential safeguard within UAE law, ensuring that anyone who suffers material or moral harm can obtain fair redress, whether that harm arises from a breach of contract or a harmful act. Understanding the types of claims, the conditions for a ruling, and how compensation is calculated helps injured parties pursue their rights with confidence.
If you have suffered harm and are considering a compensation claim, seeking specialised legal advice at an early stage can make a decisive difference to the outcome.
Do not rely solely on the information available on the website; you should consult a lawyer to clarify many matters.