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What if firm goes bankrupt in UAE?

Written By
hello, I am Meceri Smith, a lawyer by profession in AAB Advocates and legal consultant, an award-winning law firm in Dubai.

With out hold you ready, lets begin with the conclusion : Even when your organization goes bankrupt, you(Worker) are entitled for finish of service advantages which incorporates gratuity, go away wage and different entitlements. That is in accordance to Article 713(1) of Federal Regulation No. 18 of 1993 associated to Business Transactions Regulation of the […]

With out hold you ready, lets begin with the conclusion : Even when your organization goes bankrupt, you(Worker) are entitled for finish of service advantages which incorporates gratuity, go away wage and different entitlements. That is in accordance to Article 713(1) of Federal Regulation No. 18 of 1993 associated to Business Transactions Regulation of the UAE, which states: “After acquiring the permission from the choose of chapter, the trustee in chapter, 10 ten days from the adjudication of chapter has been issued, could pay the wages and salaries of the employees and staff that fall due earlier than the adjudication of chapter has been issued, for a interval of 30 days, from the cash of the chapter held at his disposal, no matter another debt. Nevertheless, if the trustee of the chapter has no ample cash for cost of such money owed, the primary cash that comes into the chapter shall be used for cost, no matter another money owed which have precedence within the checklist of liens.”

Additional, the cash payable to the worker or his beneficiaries shall get precedence for cost on employer’s movable or immovable properties. That is in accordance with Article four of the Federal Regulation No. eight of 1980 regulating Employment Relations within the UAE (the ‘Employment Regulation’). It states: “Any quantities of cash payable to an worker or his beneficiaries underneath this Regulation shall represent a primary cost on all of the employer’s movable and immovable property and shall be paid instantly after any authorized bills, sums as a result of public treasury and sharia’s alimony awarded underneath Islamic legislation to the spouse and kids.”

If your organization has gone bankrupt, you may contact a labor lawyer or a prison lawyer in Dubai

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