Living In UAE

UAE: Salary delayed? These are the penalties on companies according to the Labour Law

Ministry of Human Resources and Emiratisation has stiff penalties, fines for salary delays

Published: October 29, 2020 08:50 Last updated: November 12, 2020 14:03 Huda Tabrez, Living in UAE Editor

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Facing salary delays? The UAE’s Ministry of Human Resources and Emiratisation (MOHRE) has strong rules and regulations — Labour laws in the UAE have been drafted to protect the rights of both the employers and employees. Image Credit: Stock image

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What is the Wages Protection System (WPS)? According to Ministerial Decree No. 739 of 2016 Concerning the Protection of Wages, all employers registered with MOHRE must subscribe … — The Wages Protection System (WPS) is one example of mechanisms that help protect employee rights. Image Credit: Stock image

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Under WPS employees need to be paid salaries on their due dates — Image Credit: Gulf News

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Under this system, salaries of employees will be transferred to their accounts in banks or financial institutions, which are authorised by Central Bank of the UAE to provide the service. — The electronic transfer system ensures that salary payments are made on time. Image Credit: Stock image

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MOHRE will not process any transactions or deal with the owners of the companies that are not registered with the WPS until they register in the system. — It is mandatory for establishments in the UAE to register within the WPS system. Image Credit: Gulf News

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Late or unpaid salaries • The employer is considered as late in paying wages if the wage is not paid to the employee within 10 days from the due date, which is the next day of the end of the salary period. — When is salary considered late? 10 days after the due date. Image Credit: Stock image

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• The employer is considered as refusing to pay wages if the wage is not paid to the employee within one month of the due date. — When is salary considered unpaid? A month after the due date. Image Credit: Gulf News

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On companies employing over 100 workers, if the organisation fails to pay wages within a period not exceeding 10 days: — What are the penalties? Image Credit: Stock image

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• They will not be issued work permits starting from the 16th day from the date of delay. • Such companies delaying wages a month from the due date will be referred to judicial authorities for punitive measures. — The companies face penalties and their case can be referred to the Labour Court if the wages are delayed by a month. Image Credit: Gulf News

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• Action would be taken against all companies owned by the same owner. • The owner/s will not be able to register any new company. • Employees’ bank guarantees will be liquidated. — If the company owner has other establishments, action will be taken against those as well. Image Credit: Gulf News

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• The company will be downgraded to the third category. • Workers will be allowed to move to other companies. — You can also look at other work opportunities in case your salary has been unpaid. Image Credit: Gulf News

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In case a company employing over 100 workers delays wages over 60 days, a fine of Dh5,000 per worker whose wage is delayed will be levied with a maximum fine of Dh50,000 in cases of multiple workers’ delayed wages. — The company can also face a fine of up to Dh50,000. Image Credit: Stock image

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In case a company employing over 100 workers delays wages over 60 days, a fine of Dh5,000 per worker whose wage is delayed will be levied with a maximum fine of Dh50,000 in cases of multiple workers’ delayed wages. — The company can also face a fine of up to Dh50,000. Image Credit: Stock image

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If the company commits such violations more than once in one year, MOHRE will apply penalties stated for companies that employ over 100 workers. — Image Credit: Gulf News

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How can I raise a complaint? You can contact MOHRE’s Twa-fouq centres by logging on to mohre.gov.ae or calling their hotline on 800 60. — You can also read out detailed guide on filing a labour complaint here: https://gulfnews.com/1.1598367448791 Image Credit: Stock image

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