Salary delays in UAE: Companies to face suspension

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PHOTO BY EXPAT MEDIA

Companies that fail to pay workers’ salaries for months to face suspension

Companies operating in the UAE that fail to pay workers’ salaries four months after the due date will face a suspension, according to the Ministry of Human Resources and Emiratisation (MOHRE).

Regardless of the company’s size, it will face a suspension on the issuance of new work permits, according to MOHRE.

This is part of a new resolution by Minister of Human Resources and Emiratisation Dr. Abdulrahman Abdulmannan Al Awar amending the Wages Protection System (WPS).

Under the new resolution, MOHRE will implement a series of administrative procedures against establishments that do not follow the provisions of the WPS, depending on the duration of the delay in paying workers’ salaries, the size of the establishment and the number of employees who have not been paid.

MOHRE will be conducting site visits and electronic monitoring to ensure that establishments pay their employees on time. Non-compliant establishments will be notified and issued reminders in case of delayed salary payments. If the company still does not pay their employees’ salaries, then the issuance of new work permits for the company will be suspended.

If the company owner operates other establishments listed with the WPS in the UAE, those companies will also face a suspension on the issuance of new work permits.

If the establishment repeats the same violation within six months, an administrative fine will be imposed and the establishment will be downgraded to Tier three under MoHRE’s establishments classification system.

The amendments outlined in the new resolution include procedures that will be taken gradually against establishments that employ 50 persons or more, where the relevant Public Prosecution will be notified, and the establishment information will be sent to the relevant local and federal authorities for further legal actions. The establishment will be followed up with by the respective department in the Ministry.

Khalil Al Khoori, Acting Under-Secretary for Human Resources Affairs at MoHRE, said the resolution “focuses on compliance with the wages’ deadlines and amounts agreed upon in those contracts”.

The amendments allow establishments to submit requests for exemption from transferring their wages through the WPS in two new cases: for sailors working on board ships, and workers of foreign establishments or their subsidiaries operating in the country who receive their wages from outside the country, subject to the workers’ consent.

These cases are in addition to the previously exempted cases, which are fishing boats owned by UAE nationals, public taxis owned by UAE nationals, banks and places of worship. ICA/Expat Media

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