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Claiming the labor dues from an employer applying for liquidation

Hello,

Can I please request an expert view on the below issue and possible further guidance?

I would like to know if employees have filed labor complaints due to outstanding salaries, then:

1. If the employer does not give immediate cash settlement or agrees to provide personal PDCs to cover outstanding salaries&gratuities in a complaint of the labor dept., then how long process may last if it is escalated to labor court? And are the employees to continue work or stop?

2. Can employees switch visas if the issue is in labor court?

3. Can the company which is an LLC still proceed to apply for liquidation?

4. If they can, then how can salaries&gratuities be protected for the employees?

5. Should employees engage a lawyer to represent them against the owners of the company who decide to go into liquidation?

Thanks!

LPP Global for Legal Consultancy
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12 Oct 2019, 10:48

Hi Dear,

The companies that require a liquidator need to appoint a liquidator if the legal form of the company is one of these:

- General Partnership

- Limited Liability Company

- Simple Limited Partnership

- Public Joint Stock Company

- Private Joint Stock Company

Regarding applications of labor disputes, they must be made to the labor department concerned.

The department concerned will call the two parties to the dispute and take action it deems necessary to settle the dispute amicably. At this stage, the parties are not obliged to accept the settlement.

If an amicable settlement is not reached, the department must, within two weeks from the date of receiving the request, forward the dispute to the labor court concerned.

The referred case must be accompanied by a memo giving a summary of the dispute, evidence of both parties and the comments of the labor department concerned.

The competent court will, within three days from the date of receiving the request, fix a hearing for the claim and notify the two parties.

Kindly If you want more information or clarifications, you can visit our website or contact us directly through email or phone.

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