UAE govt's new decree: Pay workers on time or face penalties

The decree makes it mandatory for employers to pay salaries to their employees within 10 days of the registered due date

UAE govt

The UAE's Ministry of Human Resource and Emiratisation has passed a decree which makes it mandatory for employers to pay wages to their workers within the time frame of 10 days from the due date registered in the WPS (Wage Protection System).

According to the decree, a 10-day deadline has been set starting from the due date registered with the WPS for companies employing more than 100 employees for payment of wages. If this is not met within a month, legal action will be taken. If this goes on for two months (60 days), the companies will be liable for penalties ranging Dhs 5,000- Dhs 50,000.  For companies with less than 100 workers, delay in paying wages will result in work permit bans and fines. This decree is due to be implemented by October this year.

Saqr Ghobash, Minister of Human Resource and Emiratisation, said: “If the company fails to pay wages for 60 days from the due date, then administrative fines shall follow, not forgetting the punishments that had been already slapped for failing to pay wages a month from the due date."

Additionally, the government will not make any transactions with businesses that are not registered with the WPS. The companies must register with the WPS to ensure workers’ rights and for the government to deal with them.

On the other hand, if companies are able to immediately pay delayed wages to their workers, the government may lift the ban. The ban will be extended up to 60 days if the companies fail to pay wages for 2 months.

With Agency inputs