Questions & Answers
How to reach an amicable settlement with an employee upon losing a labor case?
I have an employee who filed a labor case that is in execution.
I have tried over the last 2 months to reach an amicable settlement with him on the payment of his settlement. My commitment to him has been based on the commitments I have received from my clients to the company.
He initially requested a 25% down payment and 6 PDC checks which I agreed to and he has since rejected that and then demanded 100% of his settlement which he then modified to 50% and 3 PDC checks.
I informed him that it would not be possible to pay 50% and 3 PDC checks; the best I could do is 40% and 3 PDC checks as I needed the remaining funds to cover the current employee's medical insurance, some of them have critical medical conditions requiring monthly medication.
He has again rejected that and is demanding a 50% down payment to release the case and the block on the company trade license and bank account. I also have other PDC checks due and with a blocked account, these checks will bounce. The settlement is 291KAED.
Based on the fact that it is an execution case, unfortunately, the only choice you have is to make a settlement that the employee will accept.
This settlement has to be done in front of the judge, also the settlement amounts have to be paid in the court, which is the official way.
In case you couldn't make a settlement that the employee will accept, the case will be under the judge's decision.
