Questions & Answers
Claiming the EOSB after changing the company legal structure
My company is moving from the mainland to a free zone and will cancel my labour contract under mainland company and provide me with a contract in the free zone.
However, they are refusing to pay my gratuity for the 5 years in the mainland company and promising me to pay at the end of my service under FZ including the service with the FZ as well.
Is it possible for the company to cancel my current labour contract without paying the EOS benefits and will I face any issues later when I intend to leave the FZ company?
You have the right to file a complaint in MOHRE.
If you will not receive all payments now, later you will be not able to claim it, because from a legal point of view, these companies are totally different entities and the second company will not be liable for the debts of the first company.
In the event the company terminates the old contract with you, it is best to obtain your rights, including an end of service gratuity, because it relates to the old company and the new company has nothing to do with those rights.
But if the contract is updated without termination, your rights arising from the contract are valid in the face of the new company, including the end of service benefits.
