It’s not uncommon for businesses to close their doors or undergo a change in ownership.
Such changes can leave employees in a state of uncertainty, often wondering, if a business is closing what are employees rights?
This article sheds light on this area, focusing on the UAE labour law regulations you need to know.
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Table of Contents
If a Business is Closing what are Employees Rights in UAE?
During these transitions, employers bear specific responsibilities towards their employees to ensure a fair process. These obligations reflect the principles of respect and fairness the UAE labour laws uphold.
Final Payments finalizing
Firstly, the employer must finalize any pending payments to the employees. This could include salaries, bonuses, or any other form of remuneration due to the employee.
Notice period in uae new labour law 2024
Secondly, the employer is required to provide official notice to the employees regarding the impending changes. The company’s enterprise agreement may have policies concerning the notice period and manner of announcement.
If company terminate an employee in UAE benefits
Employees’ rights and accrued benefits, such as end-of-service gratuity and unused leave, must be preserved when transferring to the new ownership.
This is ensured by the UAE labor law, which mandates that basic rights and accrued benefits are upheld during ownership transitions
Closure or Sale of Business Specifics
There are two scenarios that a business may find itself in—closure or change in ownership. These changes impact the employees differently, and it’s essential to understand the specifics of each situation.
Shutting Down of Business
If a business is on the brink of closure, the inevitable result is the termination of employment for the staff. The employees are then left to navigate the job market anew.
Change in Ownership
On the other hand, when a business is sold, employees may find themselves transitioning to the new business, which ends their employment with the original business.
Legal Services during business closures
Our Lawyers & Legal Consultants offer comprehensive assistance to employees and employers during business closures or changes in ownership.
Our labor lawyer in Dubai helps understand labor laws, draft legal documents, mediate disputes, and provide representation in labor courts.
Additionally, he keeps clients informed about legal updates and assists with visa and residency transitions.
Defend Your Rights with the Best Employment Lawyers Dubai, and learn about Employee rights on termination in UAE Dubai 2024. Also, read about the Termination business downturn in UAE Dubai.
FAQs about employee rights when company closes down
Conclusion.
At the end of this article, we hope we have answered your question: if a business is closing what are employees rights?
Understanding the rights of employees in the event of a business closure or sale is crucial for both employers and employees.
The UAE labour laws provide a framework for fair treatment and respect for all parties involved in the transition.
Employers must fulfil their obligations, whether it’s finalizing payments, providing notice, or ensuring a smooth transfer of employees to the new owner.
Employees should be aware of their entitlements and rights during this process.
The transition can be managed fairly and respectfully by adhering to the laws and seeking professional legal advice.
Contact our labor law firm in UAE for expert help. Click the Whatsapp icon below.
A legal consultant specializing in UAE labor law. He regularly publishes articles on the website and writes on various areas of UAE law, with a specific focus on labor law.
