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Fri 20 Nov 2009 02:31 PM

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Dubai to act tough on employees’ salary defaulters - paper

Labour Ministry to act strict with cos wrongfully claiming to have paid staff salary on time.

Companies that submit dishonest reports regarding salary payments to their employees will be referred to the public prosecutor, according to a report on Friday.

Acting director general at the labour ministry, Humaid Bin Deemas, told the Gulf News daily that firms that submit documents to the ministry that wrongfully claim to have paid their employees salary on time will be charged with forgery and will be referred to public prosecutor as this will be considered a criminal act.

"The ministry has introduced a new system under which each company must send through e-mail to the ministry a monthly report regarding their employees' salary," he said.

The minister said any company that failed to send the report within 30 days of transferring salaries will be blocked.

"If a company introduces its monthly report saying that they have paid the salaries on time, and then the ministry receives a complaint from any [person] in this specific company that they did not receive their salaries, that will lead to blocking the company.

"We will investigate such complaints from workers who say they have not been paid. If it's proved that the company did not pay them, then we will refer that company to the public prosecutor," he said.

The ministry told the Gulf News daily that in August this year, it had issued a decision that stipulated that each company that employed more than 50 people must sign an undertaking at the ministry stating that they are paying the employees salaries on time.

Arabian Business: why we're going behind a paywall

Nacheez 10 years ago

I worked for a company in Abu Dhabi, and I am still retained as an advisor by its CEO. The company belongs to a member of the royal family but is managed by a few trusted reprsentatives who have not been able to provide the promised funding since the beginning of this year. As a result the executives in the company have not been paid for the last several months but they have no access to the Shaikh, who, I am sure, is not even aware of the hardship caused by his representatives. Will such rules apply for Abu Dhabi companies as well. And if not what redress is available to the these unpaid senior executives?