Strict action against companies that do not pay salaries on time

Abu Dhabi: The Ministry of Human Resources & Emiratisation (www.mohre.gov.ae) has decided to take stern action against companies in the UAE for not paying their salaries on time. 

In addition to imposing huge fines, ministry services will be blocked. It also warns of strict action, including revoking the licenses of companies that repeat the offense. 

Institutions with wage arrears will be notified within 3 to 10 days. Failure to pay after 10 days will result in action. 

Ministry officials will directly inspect and take action on an establishment with 50 or more employees whose wages are delayed for more than 17 days. In the case of small firms, the issuance of work permits will be suspended. Penalties will also increase depending on the salary delay.

Legal action will be taken against companies with 50-499 employees who delay pay for thirty or more days. Companies with more than 500 employees will be classified as high risk. The issuance of new work permits to other companies under the ownership of this company will be suspended. 

Companies that delay pay for more than 2 months will not be issued a new work permit. Companies that repeat the violation will be fined and downgraded to a lower grade.

If the salary is delayed for more than 3 months, the issuance and renewal of the new work permit will be stopped.

Cases of delay in payment of wages for more than 6 months will be referred to the Public Prosecution. 

Violating company owners will not be allowed to register a new company. 

The WPS system was introduced in the UAE in 2009 in the wake of an increase in the number of non-payment of salary arrears, as the Wage Security Scheme (WPS) requires the payment of salaries through the bank, which is linked to the Ministry of Manpower and provides for unpaid wages.