A recent decision of the Abu Dhabi Global Market Court of First Instance provides useful guidance on how employment disputes may be treated when an employment contract contains an arbitration clause. In Mathonnet v Modus Operations LLC and Ayotte v Modus Operations LLC [2025] ADGMCFI 0005, the Court of First Instance confirmed that employment claims can in principle be referred to arbitration, even where the ADGM courts would otherwise have jurisdiction over the dispute.
The two cases were heard together because they raised identical issues. Both claimants were senior executives who brought claims against their employer, Modus Operations LLC, seeking unpaid salary and other statutory employment entitlements. Their claims were brought before the ADGM courts under the ADGM Employment Regulations, however, the employer applied to have the court proceedings halted on the basis that under their employment contracts each claimant had agreed to resolve disputes by arbitration instead.
Court’s Findings
At the heart of the dispute was a clause in each claimant’s Executive Services Agreement stating that any dispute arising out of the agreement should be referred to arbitration. The claimants argued that because their claims related to employment rights created by ADGM legislation they were entitled to pursue those claims in court and should not be forced into arbitration. They also relied on provisions in the ADGM employment framework which refer to employees being able to “apply...
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