Ministerial Decree No. 259 of 2025 — Settlement of Workers’ Dues: Controls, Procedures, and Deadlines

Requirements

• Workers’ claims arising from employment enjoy a statutory priority over the debtor’s movable and immovable assets and are collected ahead of other debts, including taxes and fees.
• If establishment assets are insufficient, the employer, liquidator, or bankruptcy trustee must pay what is available, prioritizing workers by seniority and other equitable criteria.
• Employers, their delegates, liquidators, or trustees must submit monthly reports to the competent Labor Directorate detailing measures taken to settle workers’ dues until full payment.
• The Labor Directorate may request any records evidencing wage and entitlement payments to verify compliance.
• In urgent cases, the Directorate may second a representative to assist in settlements upon request of the employer, liquidator, trustee, or relevant union.
• Non-compliance with wage and entitlement settlement obligations may trigger legal consequences under applicable rules.
• Workers or their representatives may sue to void transactions prejudicing their rights and may seek removal of the liquidator or trustee where warranted.

Impact on Employers

Penalties may be imposed for non-adherance to the above and employee claims may be raised.

Recommended Actions

• Designate a Compliance Liaison within HR or Legal to coordinate and adhere to all statutory requirements and to monitor updates or additional implementing instructions.
• Review Ongoing and Recent Issuances to confirm compliance.

How We Can Help

• Our Employment & Labour team is assisting clients in: Advising on the issuance update and employee communications, Liaising with Labour Office directorates to streamline logistics, and Managing disputes arising from any breaches.
• Please contact any member of our Employment & Labour practice for tailored advice. We will continue to monitor developments and keep you informed of further guidance from the Ministry of Labour.