Questions & Answers
Questions & Answers
7 available 7 • View allClaiming labour dues from a bankrupt company 

2
Q: We would like to ask about the procedure in case the company we were working with declared bankruptcy.
It is an international company with headquarters in Bombay and Dubai.`
Our contract is with Dubai, and all payments were made through the Dubai office.
What are our rights since they owe us a large amount of money? And is there any chance to recover that money?


Dec 10, 2019
1366
Liability of the guarantor toward creditors in the UAE

6
Q: Hello,
I signed as a guarantor for my brother for a company loan he took, I was a partner. However, my brother has left the country 2 years ago.
Now, I have a civil case on me and the court and bank ask me to pay the amount of AED 450,000.
Please advise, what happens if I am unable to pay this money?


Oct 21, 2018
4825
Failing to pay the amount of a judgement by the company owner

9
Q: What happens if you are not able to pay any money even after the judgement/execution of a civil case? If there are no assets that can be claimed?
There were a genuine business loss and no money to settle with the bank/court.
Please advise


Oct 7, 2019
1743
How to claim a debt from a civil company after filing the execution?

1
Q: I won a civil court case against a civil company with a professional license (Not an LLC company). I started an execution case for AED 262,800.
One of the partners of the civil company informed me that his company will file for bankruptcy and I will not get any money at all.
He said that all the company debts will be wiped away and he will not get a jail term and he will not have to pay anything.
Article (671) of Civil Transactions Law regarding civil companies states that partners have to pay the debts of the company.
(A) Which view is legally correct? Is it possible to demand money directly from the partners of a civil company after the company is declared bankrupt?
(B) How should I protect my rights if the debtor Civil company files for bankruptcy?
(Important Question C) Will the court automatically distribute the debt of the civil company to its partners upon declaration of bankruptcy? Or do I have to start a new court case against the partners after the civil company is declared bankrupt?


Nov 2, 2021
334
How to get the labor dues while the company files for bankruptcy?

1
Q: Dear sir/madam,
I have a labor case with my previous company for non-payment of settlement and pending salaries. The judgment came in my favor and I received 35% of my pending amount through the AD judicial department.
Later, I came to know that my company filed for bankruptcy proceedings and it’s still with the court. What can I do next?
Is there any possibility to get my remaining amount?


Dec 12, 2022
168
How to collect judgment from LLC with closed office and expired license?



3
Q: Hello,
I have a commercial execution case for the recovery of payments.
I sent a notification to the local owner (100% ownership of the LLC), but I see that the company has closed its office and its license has expired.
How can the courts get the money ordered in the judgment?
Thank you!




Oct 12, 2023
203
Should I sign an agreement after my healthcare employer's insolvency voids my offer letter?


1
Q: Dear Lawyers,
An old healthcare organization goes into insolvency. I, being employed by the organization, have been informed that my offer letter is considered null and void due to insolvency.
They are asking me to sign an agreement stating that I have no relationship with the previous company and cannot file a case against the new company.
In this case, what should be done? Do I need to sign the agreement?
They have not provided any details about the new group that is going to take over.
Could you kindly advise on how to approach this situation according to UAE labor law?



Oct 22, 2024
36
Legal blog
4 available 4 • View allThe Legal Alternatives of Bankruptcy in the UAE Legislation 1
The UAE continues to strive to modernize its laws and create more flexibility in meeting the needs and requirements of investors and businessmen and elevate its economy to the highest levels of growth and development.
Apr 9, 2019
2442
An Overview of the New UAE Labor Law and Recent Amendments of 2024 233
The UAE has adopted a major reform in its legislative system that brought about 40 new laws and amendments to the company law, criminal law, personal status, among others. The amendments aim to develop the legislative structure in various sectors, the labor law being one of these, was the most recent. We try in this article to shed light on the changes introduced with the new labor law and their significance on both, the employer and employee.
Sep 10, 2024
90227
There is an execution against me in the UAE; what should I do? 39
There is an execution against me in the UAE; what should I do? How do I cancel the arrest warrant and summons, and how do I deal with the travel ban? Dear readers, we present this simplified article, in which we explain the implementation procedures briefly, how the defendant can deal with them, and the options he can take to enforce the judgment smoothly while decreasing the damages of implementation as much as possible.
Apr 18, 2024
3863
Filing for Bankruptcy and Insolvency in the UAE: What You Need to Know 8
Dealing with financial difficulties can be overwhelming, but the UAE provides a comprehensive legal framework to manage bankruptcy and insolvency in a way that benefits both debtors and creditors. Understanding these laws and how they work can make a huge difference in navigating the process successfully.
Nov 12, 2024
310
Laws & Regulations
4 available 4 • View allFederal Law No. (18) of 1993 Issuing the Commercial Transactions Law 19
This Law applies to merchants, as well as to all acts of commerce carried out in the UAE by any person even though he be not a trader. Commercial matters regarding which specific Federal laws are issued shall be subject to the provisions of such laws, and to the provisions hereof which do not contradict with said laws.
Sep 7, 1993
32998
Federal Law No. (8) of 1980 Concerning the Regulation of Labor Relations 53
The provisions of this Law, known as "UAE Labour Law", govern the relationship between employers and employees and other labour matters in the United Arab Emirates. There are special labour related regulations applicable in some of the free zones in the UAE.
Apr 20, 1980
103588
Federal Decree-Law No. (33) of 2021 On the Regulation of Labor Relations 34
The provisions of this Decree-Law, known as "New UAE Labor Law", govern labour relations in the private sector of the United Arab Emirates. The New Labor Law repeals the previous UAE Labor Law (Federal Law No. (8) of 1980).
Sep 20, 2021
26352
Federal Decree-Law No. (51) of 2023 Promulgating the Financial Restructuring and Bankruptcy Law 0
The provisions of this Federal Decree-Law No. (51) of 2023 Promulgating the Financial Restructuring and Bankruptcy Law, known as the "Bankruptcy Law" governs Financial Restructuring and Bankruptcy regulations in the United Arab Emirates
Oct 2, 2023
135

Other answers by
522 522 answers •
View allThe maximum notice period employers can put in the contract as per the new labor law 0
Our internal contract has a notice period of 3 months from both parties. In the new labor implementation, only one month's notice is required for less than 5 years of service.
Please advise if we can follow our internal contract since the position is very curtailed and the organization will not be able to replace the position within one month.
Sep 8, 2022
340
Annual leave salary calculation as per the new labor law 0
Dear sir/madam,
Annual leave salary calculation as per the new labor law.
Can you please clarify the correct annual leave salary rules?
Some say it is basic + HRA for the month you will take off, others say it is full salary, and somewhere I read it is basic + HRA (annual leave salary) plus the normal salary you get.
Can you please clarify?
Thanks for your valuable time and kind assistance!
Sep 7, 2022
2646
I want to dismiss an employee under article 120. Do I need to pay him the EOSB? 0
I want to dismiss an employee under article 120/44 of MOHRE labor law. I want to know if we need to pay him his complete end-of-service benefits.
Jul 26, 2022
361
What happens WPS system if my employer deposited less than my salary? 0
Dear Madam,
My salary is 5000 in WPS, but in June, my company deposited 1000 by mistake.
Is there any chance to rectify or deposit the 5000 dirhams again?
Jul 13, 2022
354
How to appeal the labor judgment if the court did not approve all my dues? 0
My employer has not paid my salary for 8.5 months. I went to the labor court, and was referred to Dubai Courts.
The judgment came and I did not receive the full claim including salaries and 3 months' compensation.
Please advise whether I can go for an appeal and what will be the time for execution.
Need your valuable advice.
Jul 9, 2022
387
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