UAE imposes penalties on firms that don’t pay salaries on time: Report

The United Arab Emirates (UAE) will implement a series of administrative procedures against companies that do not pay the salaries of their employees on time, a report by the Emirates News Agency said on Wednesday.Minister of human resources and Emiratisation Abdulrahman Abdulmannan Al Awar has issued ministerial resolution No. 346 of 2022 regarding the amendment of certain provisions of Ministerial Resolution number 43 of 2022 on the Wages Protection System (WPS).The administrative procedures will be implemented against establishments that do not follow provisions of WPS depending on the duration of delay in paying salaries to employees, the size of the company and the number of employees that have not been paid.The ministry of human resources and Emiratisation (MoHRE) will monitor establishments registered in its database, regardless of their size, through field visits and the electronic monitoring and inspection system to ensure they pay their employees on time, the ministerial resolution further states.Reminders and notifications will be issued to establishments that do not comply. If no action is taken, issuance of new work permits for such establishments will be suspended, the WAM report added.The MoHRE also says if the owner/owners operate other establishments listed with the WPS, similar penalties will be imposed on each of them, after notifying affected establishments about the suspension of work permits.If the same violation is repeated by such establishments in 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) under the MoHRE’s establishments classification system.“The issuance of the Ministerial Resolution is part of the ministry’s efforts towards developing the legislative structure regulating the UAE labour market, which leads global competitiveness reports due to its efficiency, flexibility, and achieving an attractive environment for employers and talented workers. This is especially true because it ensures the rights and obligations of both parties to the contractual relationship in a balanced manner,” Acting Under-Secretary for Human Resources Affairs at MoHRE Khalil Al Khoori said.The resolution aims to enhance the long-term balance and stability of the relations between employers and employees, in line with the rights and responsibilities outlined in the contracts between both parties, Al Khoori added.