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Pay salaries on time to avoid ban, private companies in UAE told

Private sector companies in the UAE must pay workers’ salaries on time or be banned from doing business, according to a new resolution issued by the Minister of Human Resources and Emiratisation.

A new ministerial resolution on the wage protection system identified five basic steps to which private sector establishments must adhere in order to avoid a ban.

According to the resolution, companies must pay their worker’s salary at a rate of no less than 90 percent of the total registered workforce, and no later than the 15th of the following month.

Companies that fail to pay their workers’ salaries on time will be banned from transactions in MOHRE’s system starting on the 17th of the following month.

The labor law also stipulates that a company will be banned in case it fails to pay the salary of an employee for three consecutive months, even if 90 percent of the total employees are paid.

In case an employee receives 80 percent or more of his salary as specified in the labour contract, then he or she is considered a recipient of financial dues. ICA/Expat Media

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