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Abu Dhabi, UAE

How to get money as per the final judgement when the company declares bankruptcy?

I have won a labour case from the Abu Dhabi labour court against my company and execution has done during Nov 2020 but the money is not yet received.

The company is now working. If the company will declare bankruptcy now, what are the chances of getting my money as per the final judgement?

Hussain Lootah & Associates
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6 Apr 2021, 08:28

Dear Questioner,

Unfortunately, you have not mentioned at which stage the execution procedures have reached.

However, please make sure that the execution procedures are progressing against your employer.

Further regarding bankruptcy, please note that Under Article 713(1) of Federal Law No. 18 of 1993 (Commercial Transactions Law), the wages and salaries of workers that have become due 30 days prior to the adjudication of bankruptcy may be paid on a super-priority level (“regardless of any other debt”) by the bankruptcy trustee.

Your company shall have to pay the labor dues before the company liquidates itself or if it undergoes a bankruptcy proceeding.

Regards,

Rajasree Ravivarma

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