Questions & Answers
Recovery of a loan to employer and outstanding salaries
I’ve given a loan to my employer due to bad cash flow position of the company to support the company without a written agreement.
Due to the bad position of the company, the company had fired more than 80% manpower including myself.
I have a few salaries also pending and until last month, the company was paying me only the EMI of the said loan.
Kindly advise me how to recover the dues including loan + FFS.
Dear Sir/ Madam,
Thank you for reaching out to me on this.
Firstly, you will have to raise a labour complaint before the Ministry of Labour via Tawafouq or call 80060. This is the pre-requisite for filing labour case in court.
The Ministry will call both the parties i.e. you and the company for an amicable resolution. If there is no amicable resolution, the Ministry will issue a letter to you to approach the court.
In the court, you will have to demand your pending salaries, gratuity, pending annual leave, up to 3 months salary as compensation due to wrongful termination. All of this at 9-12% of legal interest.
For the loan given to the employer, if you have any bank transfer receipt or acknowledgement from the employer, then this will assist your case or else it's just your word against the Employer.
Kindly gather more evidence on this loan and stake your claim before the Labour Court.
I trust you will find this response adequate.
Regards,
Hari Wadhwana
Dear questioner,
You can initiate a labour complaint with the MOL for your pending salaries. Along with that, you can claim up to 3 months salary as arbitrary dismissal.
Further, you can recover the money that you have given to the company as a loan by filing a case in the court.
Kindly contact us on the phone for a detailed discussion or write to us at our email for further assistance.
