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Employer passed away - Company to be taken over by employers family member

I have been working in a small private company for the past seven years. My employer passed away last month. Someone from my employer’s family is going to take up the company. I am not sure if he is going to continue with the company or not.

Since we have no internal work contract, would I be eligible to get my indemnity or not? Could you please shed some light regarding my indemnity in both the circumstances.

Name withheld
Answer:
We answered the same question very recently but we are reproducing the same answer for your benefit just in case you did not read it the first time. “You don’t need to worry about anything because under all circumstances you are entitled to your indemnity whether the new owner keeps the company or decides to close it down.

For this purpose we need to have a close look at the second half of Article 50 of the Kuwait Labor Law which states as follows: “In the event where the establishment is sold, merged with another establishment or transferred by inheritance, donation or other legal action, the work contract shall remain valid under the same conditions and the obligations and rights of the original employer towards the workers shall be transferred to the employer who has taken his place”.

So, even if your new employer keeps the company or decides to close it you will get your indemnity. In the event of closure of the company, the owner has to clear all the dues, both of the employees or all others , before the company can be closed. In case the new employer refuses to clear these dues, he can be taken to court and forced to pay”.

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