Companies That Delay Workers Salary to Get These Penalties

Dr. Abdulrahman Abdulmannan Al Awar, Minister of Human Resources and Emiratisation, has issued Ministerial Resolution regarding the amendment of certain provisions of a Ministerial Resolution on the Wages Protection System (WPS) for employees' salaries.

Depending on the duration of the delay in paying workers’ salaries, the size of the establishment and the number of employees that have not been paid, establishments will the face a series of administrative procedures from the Ministry of Human Resources and Emiratisation (MoHRE) under the new resolution.

Penalties

The Ministry will also issue reminders and notifications to non-compliant establishments, and in the case no action is taken following the receipt of notifications, issuance of new work permits for such establishments will be suspended.

All non-compliant establishments, regardless of size, that fail to pay wages four months after the due date will face a suspension on new work permits. If the owner operates other establishments listed with the WPS in the UAE, similar penalties will apply to each of them, after notifying the affected establishments about the suspension of work permits, considering the unity of the partners.

If the establishment repeats the same violation within six months, an administrative fine will be imposed as per Cabinet Resolution No. 21 of 2022, and the establishment will be downgraded to Tier three (3) in the establishments classification system.

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

Exempt Cases:

The amendments also allow establishments to submit requests for exemption from transferring their wages through the WPS

• seamen/sailors working on board vessels/ships
• 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.