Understanding Your Rights When Clients Refuse Payment in the UAE

Apr 25, 2026

50 min

Apr 25, 2026 02:31

Ask Gulf News: What are your rights when a client refuses to pay for completed work?

## Legal Rights for Unpaid Work

In the UAE, if a client refuses to pay for completed work, you have the right to seek compensation. This applies even if you lack written evidence of the losses incurred due to the client's delay or refusal to pay.

## Conditions for Claiming Compensation

To claim compensation, three elements must be present: fault, harm, and a causal link between them. The court will assess these factors to determine if compensation is warranted.

## Court's Role in Compensation

The court evaluates the situation, including whether you fulfilled your contractual obligations. Compensation is determined based on the circumstances, and the court considers if the client had a valid reason for delaying payment.

## Legal Precedent

A ruling by the Cassation Court (No. 991/2025) states that a debtor's delay in payment without a valid excuse constitutes harm to the creditor. This harm entitles the creditor to compensation, as the delay deprives them of their right to benefit from the owed amount.

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