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Probability of getting money from closed company

ious company colleagues and I got judgement copy from Abu Dhabi labour court for settlement of pending salary and gratuity from company. Nothing positive is moving from this point. Currently company is not in operation and has been shutdown forever, with owner getting obscond to US. It is a manaufacturing company. They have debt with bank, suppliers etc. And now looks like company's building asset is with bank. Debt:asset ratio is high. Is there any optimism in getting money?

Thanks

| 👁 1077 | Posted April 18, 2018 | Share on Facebook | Twitter | Google+

| Modified: April 18, 2018 | Author:

9 Comments

Pithing_Needle 1 year ago

Title made me laugh. Good luck!

askdubailaw 1 year ago

Your best bet is to jointly file a civil case against your employer.When a company is declared bankrupt, the courts will order that its assets are liquidated and its debts are paid off in accordance with the order of preferential debts as set out in Article 189 of the Bankruptcy Law. From an employment perspective, the Bankruptcy Law provides some degree of protection for employees by ranking payments owed to employees as second in the order of preferential debts (the first being any expenses of the winding up process and any fees of experts and trustees). The Bankruptcy Law (Article 189 (B)) provides that end of service gratuity, unpaid wages and salaries due to employees which are paid regularly (not including allowances, bonuses, other contingent payments, or any other benefits either financial or in kind) are to be paid out provided that they do not exceed in total the salary of three months as a maximum. There is no definition of salary and it is not presently clear whether this is referring to a maximum of three months total remuneration or a maximum of three months basic salary only. Given that Article 189 expressly states that any allowances and bonuses etc are not to be included, we consider that the three month cap refers to basic salary only as opposed to total remuneration.

MannarMathai 1 year ago

Secured loans (i.e Bank loans secured with the building etc) would be settled first; and suppliers, employees would probably be the last ones to get settled. Given the high debt/asset ratio, doubt they would be getting paid.

linux_n00by 1 year ago

iirc they prioritize stakeholders on payouts right? correct me if im wrong.

Linkinpayne 1 year ago

Am currently in my new job. But the thing about leaving the country within 30 days, I don't think so. Because still few of my old colleagues are residing with the same visa looking for job. MOL has given permission for them. The least they could do.

Linkinpayne 1 year ago

Sorry to be the one to tell you this but the likelihood of you getting your money back is slim to none. Yea man I too felt the same way, but wondering how MOL people still feeds me a positive brunch. Anyways karma on being other side taking toll on us, I was shocked to see the number of employees from different companies in MOL office facing the similar situation, something big needs to be done on the system.

hummusporotta 1 year ago

Now you have 30 days to find a new job or leave the country. forget the money

TheModernPaean 1 year ago

Whoa...death? Dude...chill.

YYZSher 1 year ago

Sorry to be the one to tell you this but the likelihood of you getting your money back is slim to none. Hopefully, karma catches up to your employer and he suffers a painful death. I know it sounds extreme but I can't stand when companies screw over their people like this.


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