The UAE has updated a number of rules under its Wage Protection System – in a bid to further protect salaries of workers in the country.
The Ministry of Human Resources and Emiratisation (MOHRE) said it will monitor companies through field visits and inspections as part of the new resolution.
It will issue penalties against companies based on factors including, their size, how long the salaries are delayed, and the number of employees facing the issue, the ministry said.
Non-compliant companies will receive reminders. In case an employer fails to comply, the ministry will suspend the issuance of new work permits until previous wage disputes have been settled.
“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 for talented workers,” MoHRE’s acting under-secretary for human resources affairs Khalil Al Khoori explained.
Legal action will be carried out by local and federal authorities against non-complying firms.
An administrative fine will be imposed as per Cabinet Resolution No. 21 of 2022, if the violation is repeated within six months.
The establishment will also be demoted to Tier three (3) under the MoHRE’s establishment’s classification system.
Sailors working on board ships and those employed in foreign establishments or their branches operating in the country are exempt from the Wage Protection System.
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