UAE issues new rules for late payment of salaries
A new monitoring and inspection system aims to crack down on late wage payments…
The UAE’s Ministry of Human Resources and Emiratisation (MOHRE) is cracking down on late payments of wages, issuing new rules to safeguard employee salaries.
According to MOHRE’s Twitter, Dr. Abdulrahman Abdulmannan Al Awar, the UAE’s Minister of Human Resources and Emiratisation issued Ministerial Resolution No. 346 of 2022 this week, which regards the provisions amendment of salaries paid to those in the private sector through the Wage Protection System.
As per the resolution, the Ministry will establish a new inspection system to monitor all private sector companies both online and through regular field visits. Those found to be in breach of the UAE’s Wage Protection System (WPS) will be subject to fines based on the size of the company, the number of employees who haven’t been paid, and the length of time employees have gone without being paid. Also outlined in the resolution, companies of 50 employees or more will be subject to gradual procedures that will be based on delay in wage payments.
HE Dr. Abdulrahman Abdulmannan Al Awar, Minister of Human Resources and Emiratisation, has issued Ministerial Resolution No. 346 of 2022 regarding the provisions amendment of the wages payments for private sector establishments through the Wage Protection System. pic.twitter.com/5AaMcZEymB
— MOHRE_UAE وزارة الموارد البشرية والتوطين (@MOHRE_UAE) July 27, 2022
According to The National, non-compliant companies will be given reminders before further action is taken. Those that fail to address late salaries could see new work permits suspended until wage disputes are handled.
Back in January, MOHRE took to Twitter to remind private sector companies that they must pay salaries on time and in full to avoid fines. Salaries should be paid through the Wage Protection System, which was introduced in 2009 to ensure wages are paid in a timely manner.
As per Ministerial Decree No 739 of 2016 concerning the protection of wages, all companies registered with the ministry must subscribe to the WPS and pay salaries through the system.