Questions & Answers
How to settle the EOSB for employees when new owners take over the business?
I am yet to join an organization that has been in existence in the UAE since 1996. However, they were hard hit during Covid 19.
The owner was sick for some time & during this period, there were funds that were embezzled & some executives ended up fleeing the country, leaving employees unpaid & the company barely running.
There are investors who want to inject funds into the company at the moment (buy 75% of shares) currently & revive operations.
We are currently working on resolving issues with WPS, renewing the Trade License & registering the new investors to the new commercial license.
The bone of contention is that there are employees who worked with this company for over 30 years & want to leave but there are unavailable funds to cover their EOS.
Kindly advise how we should go about it. Can we negotiate EOS pay?
Hi,
You have to discuss with the employees to settle the EOS and to solve it with WPS you have to pay the minimum limit.
Unfortunately, their dues must be covered. It is possible to conclude an agreement with them to install the dues and receive them in installments according to a legal agreement concluded between you.
It is preferable to write the agreement through a lawyer.
