Employee Rights When an Undertaking is Transferred in United Arab Emirates

There are no automatic transfer rights of employees from one employer to another (whether pursuant to the sale of a business or part of a business as a going concern or the movement of a service contract pursuant to a retendering or a service provision change), either in the UAE or DIFC. Because of the nature of employee sponsorship for UAE residency and labour purposes by a specific employing company, the movement of employees between companies can only occur pursuant to a process of termination and rehire. Issues such as continuity of service, end of service gratuity and accrued but unused holiday roll over can be addressed by side agreement with the transferring employees (and should be carefully drafted and documented).

For more information, please contact L&E Global.
This information was contributed by Clyde & Co.
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