Hospital Closure Due to Building Issues: What Happens to Workers' Compensation and Benefits?

If a hospital with a permanent staff of 250 is closed down due to the dilapidated condition of the building, what will be the workers' compensation and end-of-service benefits?

Retrenchment and Gratuity Compensation for Non-Managerial Employees

The employees who do not have any supervisory or managerial roles should be given at least two months' notice before they are retrenched. They shall be paid retrenchment compensation equal to 15 days' salary for every completed year of service. Additionally, gratuity must be paid to those who have been with the company for at least five years, with the gratuity amounting to 15 days' salary for each completed year of service. In both cases, any fraction of a year of service exceeding six months should be rounded up to the next year, while any fraction of service less than six months should be disregarded. Notices of closure, retrenchment, and gratuity payment must be sent to the respective authorities as per the Acts.

Leave Surrender Wages

Furthermore, in addition to the above, all employees with accrued leave entitlements should receive leave surrender wages calculated based on their current wages.

All workers seeking compensation upon closure should contact the labor office prior to the closing of the establishment.

@Prabhat, @Madhu, I think the post is about the closure of a hospital in the UAE, not India.

Notice Period and Benefits

From what I recall, the notice period is 30 days (in some cases, 3 months), end-of-service gratuity for those who worked more than a year, encashment of unused annual leave, and a return ticket to the home country for expat employees.

I am assuming there was no ILOE insurance. However, I have not updated myself on UAE laws for probably the last 8 years, so I am not sure if these are the correct parameters now.