Judicial principles and studies
Company coalition and a worker's rights dispute
A coalition of companies has a separate legal personality from its member companies; suing a single member without naming the registered coalition and other constituents in the power of attorney renders the adversary defective and subject to dismissal.
Updated: 10 September 2026
Prepared and reviewed by: Ashraf Al-Khawaja
Subject
The study addresses who must be sued when the employer is organized as a coalition of companies that has an independent legal personality from its participating firms.
Summary
The coalition constitutes an independent entity with its own legal personality and financial liability distinct from each participating company outside the coalition's internal framework. Filing suit under a power of attorney against one participating company does not, by itself, establish a valid claim against the coalition as the employer unless the power of attorney expressly names the other constituent entities and their capacities. An agent cannot, by a private power of attorney, sue entities not explicitly identified. If a single company is sued before the registered coalition (registered with the Ministry of Industry and Trade) is made a party, the adversary is defective and subject to dismissal.
Practical significance
Claimants should direct proceedings against the legally correct adversary — the registered coalition where applicable — and ensure the power of attorney explicitly identifies the coalition members when intended. This is an educational summary and not a judicial text or legal advice.
Sources and references
Verify the official text and latest amendments before relying on this material professionally.