Questions & Answers
Will I receive my unpaid salaries and gratuity after the company closes?
Hello Ma'am/Sir,
I have been working for more than four years at a company based here in Abu Dhabi. My company is supposedly closing down due to financial debt, and I have received my termination letter.
Will I be able to get all the salaries that the company hasn't given to me, and will I still be able to receive my gratuity?
Thank you very much for your response!
Greetings,
Yes, they must pay all your delayed salaries, end-of-service allowance, and unused vacation allowance.
Our office in Abu Dhabi can file a complaint for you and claim all your rights. You can come to our office.
For further inquiries about your topic, you can reach our office or contact us on WhatsApp at [------] or share your WhatsApp number so we can contact you.
Dear Questioner,
According to paragraph (7) of Article 65 of the Federal Labor Relations Regulation Law, the entitlements of workers in the establishment have priority over the employer’s funds, following the funds of the public treasury.
This means that the entitlements of government agencies must be paid first, then the entitlements of the workers from any funds that belong to the company.
Even in the event of the company’s bankruptcy, the entitlements of the workers are paid before other debts. If there is insurance on the company’s work risks, the insurance amount can be enforced against the insurance company.
If there are guarantees with any party, such as insurance or others, enforcement can be done on those guarantees as they are the property of the company in the same order as debt distribution.
Hello,
Yes, you are entitled to receive the unpaid salaries, and even in the event of company closure, you are likely entitled to gratuity based on your basic salary and years of service.
Contact MOHRE to file a complaint to get what you are owed.
For further clarification, please share your WhatsApp number.
Dear Questioner,
1. Unpaid Salaries:
In the case of your company closing down due to financial debt, you are entitled to receive all the salaries that the company owes you.
This includes any unpaid wages, bonuses, or other forms of compensation that you should have received during your employment period. The company is legally obligated to settle all outstanding payments to its employees before closing down.
2. Gratuity Payment:
Regarding gratuity, also known as end-of-service benefits, in Abu Dhabi, it is a mandatory payment made by employers to employees who have completed a certain period of service with the company.
The gratuity amount is calculated based on the employee’s basic salary and the length of their service. Even if the company is closing down, you should still be entitled to receive your gratuity payment as per the labor laws in Abu Dhabi.
3. Legal Recourse:
If your employer fails to pay your unpaid salaries or gratuity upon termination, you may need to take legal action to claim what is rightfully yours.
You can file a complaint with the Ministry of Human Resources and Emiratisation in Abu Dhabi or seek assistance from a legal advisor specializing in labor law to help you navigate the process of recovering your dues.
