أسئلة وأجوبة
Labor claim of a former employee
I sold my company four months back in Sharjah, UAE and relocated to India.
Now one of my employees who left the company and cancelled the visa prior to the company sale has filed a lawsuit against new owners for which he claims some salary due and a leave salary. I was not aware of dues or not informed by my management team.
Who is responsible in this case to settle the due as per law?
Dear Questioner,
Please note that you are still liable to pay the Employee's salary in this case because the liability occurs during your ownership period and even if you paid or not paid to him. The new license owners can sue you for the loss they had for such law suit. I would recommend you to contact your former employee to settle the payment through an amicable deal.
The law is clear in such cases. There is a grace period after the sale of the business where you and the current owner are together liable for the due salaries of the employee and before him. However, you as the seller is liable 100% before the buyer of the business. He can easily file a case against you for breach of the terms of the selling contract because you did not inform or acknowledge such debt.
No one will believe that you are not aware that salaries are being delayed or not paid because it is your liability to do so.
