Changing the company’s legal status: In the UAE, what happens to my gratuity?

Dubai: How are employees affected when a business changes its name and legal status? If he continues to work for the same employer under the newly formed company, how would his end-of-service benefits be calculated, a Gulf News reader asked?

He inquired: My company is changing the name of its legal entity. For my end-of-service settlement, I had a choice of getting it now or keeping it with the new legal entity. I chose to get the settlement right away. I have the entire balance of my previous year’s annual leave; does the company have to take into account the previous year’s annual leave when calculating my gratuity? With the new legal entity’s contract, my employment date has also been altered, making me feel like a new employee.

Gulf News asked Mohamed Elmasry, an Associate at Alsuwaidi and company Advocates and Legal Consultants, about the UAE Labor Law, Federal Decree Law No. 33 of 2021, as ab claims

Ras Al Khaimah, UAE: For the third time, the country’s weight loss competition returns with a vengeance, offering cash prizes worth Dh50,000 to the top finishers.

The RAK Biggest Weight Loss Challenge (RBWLC) 2023, a popular community initiative launched by RAK Hospital and the Ministry of Health and Prevention (MoHAP) Ras Al Khaimah, continues the campaign to raise awareness of obesity, the biggest epidemic of our time.

The organizers announced on Monday that the eight-week challenge, during which over 10,000 people competed for the top spots last year, will begin on January 20 and conclude on March 22 with an awards ceremony honoring the winners.

There are three distinct divisions in the competition: corporate, online, and physical, with exciting prizes for winners in each category. The number of cash prizes has been increased, giving more contestants a chance to win and encouraging people to “Lose Big, Win Big.”

Additionally, your employment date is regarded as the date of your new contract with the new legal entity, and you are regarded as a new employee with the new legal entity. This applies to your new legal entity contract. In light of this, I advise the reader to request that the new employer give you the employee’s remaining 30 days of leave so that he can use it, or to receive cash compensation for his previous year’s annual leave balance.

I recommend the peruser to request that the new organization give you the 30 days pass on equilibrium to be utilized by him or to be remunerated in real money with his yearly leave balance from earlier year.
– Mohamed Elmasry, an associate at Alsuwaidi and a company advocate and legal consultant, also talked about how the law requires a company to pay all of its debts when it changes its legal form.

“Please be advised that changing the name of the entity without changing the license number may result in the new company being responsible for any dues owed to the previous company. Therefore, in order to avoid any liabilities, it is essential to ensure that all legal formalities are completed correctly and that the new company has assumed all of the old company’s responsibilities,” he stated.

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