Check labour records, new sponsors told

ABU DHABI — Labour authorities have warned employers to check the record of private companies or facilities they wish to own as they would be totally responsible of the labour status of the new firm after six months of signing the purchase contract.

By Nada S. Mussallam

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Published: Tue 16 Aug 2005, 10:06 AM

Last updated: Thu 2 Apr 2015, 7:13 PM

Speaking to Khaleej Times, a source in the Labour Dispute Department of the Ministry of Labour and Social Affairs, urged new sponsors to get an official document from the ministry stating that the company record was clear from labour violations.

He also advised employers who wish to own a new company to consult the ministry before signing contracts about the labour status of the company and its record regarding labour violations and legality of the labour force.

"A new phenomenon has lately spread as the theme of most of the complaints lodged at the ministry were about employers expressing discontent over being exploited by old employers from whom they bought facilities that were later found to have breached labour laws and rules that aimed to streamline the local labour market," said the official. He attributed the grievances of new employers to their ignorance about the labour laws in force in the country, a matter that encourages old employers to exploit them.

As per the labour law, both the new and old sponsors shall equally share the responsibilities of the existing labour force during the first six months after the company has been sold, and these include violations, labour disputes and fines, explained the official.

"New sponsors should give priority to verify whether the status of the company was legal or not, its compliance with the labour laws and regulations, and the situation of the employees regarding wages and the environment at the workplace."

The official disclosed that some unscrupulous employers do not inform the new sponsor that the company faced labour problems that needed to be settled.

"In most cases, a dispute erupts between the two employers after some time. These cases usually end up in the labour court," he said.

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