Employment Restructuring in UAE
- Employment restructuring has been made possible by the UAE government in response to COVID-19 pandemic so businesses during market fluctuation or crisis can cope to poor business performance and mounting debt.
- The restructuring process requires a considerable amount of expertise on a broad range of disciplines including financial, business, and legal in order to make sure that all conditions and considerations have been properly assessed and the most optimal way moving forward is uncovered.
- HHS Lawyers has a team of experienced employment restructuring experts that work alongside insolvency and liquidation specialists in providing legal advice and strategic guidance to businesses that are considering of restructuring in UAE.
When your business has to make a lot of change, it can result to employment restructuring. We can help you not only restructure employment professionally but legally as well.
Employment restructuring in UAE can make a business more successful. However, there are times wherein it is required and unavoidable. Regardless of the reason why you are looking into it, it’s absolutely crucial that those who will be affected by the process are treated fairly. Also, legal procedures are to be followed properly, which can include informing and involving staff until the completion of the entire process. This is also beneficial for a business as it’s going to decrease the chance of it going to litigation when the final decision has been taken.
If you think a redundancy is likely or you want to reorganize the business, our legal team here will be able to provide advice on every aspect that you have to think about. The approach of our lawyers and legal consultants based here in UAE is straightforward and pragmatic. We'll help make certain that you completely understand what you’re hoping to achieve. Our legal team will also explain likely outcomes from employment restructuring, thoroughly discuss your options, as well as inform you of all relevant laws. The advice that you will receive, of course, is jargon-free.
Essentially, choosing to tap into our team’s expertise means you’ll gain peace of mind as expert legal advice has been what’s behind the critical business decisions that you make.
UAE Ministerial Resolution No 279/2020
The Ministerial Resolution (No 279) of 2020 grants businesses affected by the coronavirus pandemic and with expatriate residents as employees the right in restructuring contractual obligations with employees as per the gradual five procedures, which are as follows:
- the implementation of a working system for remote work;
- granting of paid leave for employees;
- granting of unpaid leave for employees;
- reduction of salaries temporarily within the precautionary period (the business would have to sign an annexure that’s limited to agreed-upon terms or for as long as ministerial resolution is valid);
- reduction of employees’ wages permanently (the business would have to obtain the approval of the ministry first by applying for employment contract data modification)
Legal Employment Restructuring in UAE
As experts in employment restructuring and redundancy, we will be able to provide you with specialist labor and employment legislation advice in order to make sure that all changes which you wish in implementing to your business have been done in an effective and efficient way that’s possible.
With employment restructuring, it’s essential you treat staff members fairly by complying with legal requirements set forth by the authorities. Otherwise, you will be facing claims raised by your employees. This is exactly where we’ll be able to help.
As you may know, employment restructuring can cause a shift in the mood and productivity of employees not only for the ones that are affected directly. A restructuring is typically met with different reactions. Our team will provide you with the help you need in order to manage this process effectively.
Our employment restructuring plan can help you successfully manage every stage of the process. Should you want our help, we’ll provide expert legal advice regarding:
- Avoiding compulsory redundancies;
- Giving staff members the necessary notice;
- Consultation with staff members;
- Selection of staff who will be affected by the restructuring;
- Support for the staff and planning for the future of the business;
- Working out filings of reports to authorities;
- Proceeding with the process of restructuring
All businesses have to make tough business decisions in order to make sure they succeed or survive crises. Sometimes, business decisions result to employee roles getting restructured with some facing potential job losses.
Take note: it’s crucial for staff and anyone else that stands to be directly affected by the change is informed as to what’s going on. It's important as failure in communicating properly during a stressful time will lead to an employee taking the company to litigation with a high likelihood of winning claims.
Contact us to know more about employment restructuring in UAE.