In a UAE business acquisition, the buyer assumes responsibility for employee visa sponsorships and must honour end of service benefits for existing staff. Proper due diligence and clear transfer agreements are essential to ensure compliance with labour law and avoid unexpected liabilities.

In the UAE, when acquiring a business, the buyer inherits responsibility for existing employees’ visa sponsorships and end-of-service (gratuity) benefits under UAE Labour Law. This means you must honor ongoing employment contracts, continue visa obligations, and pay accrued severance when employees leave. Emotionally, it can feel heavy you’re not just buying a business, you’re taking on real human responsibilities, so planning carefully and understanding these obligations upfront is key to avoiding surprises and keeping staff morale intact.

In the UAE, a buyer assumes responsibility for employee visa sponsorship once staff are transferred under the new entity. The buyer is also liable for end-of-service gratuity, typically preserving employees’ accrued service unless contracts are formally terminated and settled at closing. Proper coordination with the seller is essential to avoid unexpected labor and immigration liabilities.