AUTHORITIES CRACKED DOWN ON COMPANIES IN UAE FOR NOT PAYING THEIR SALARIES ON TIME

  • 11/03/2022

Abu Dhabi : Authorities in the UAE have cracked down on companies that do not pay salaries on time. In addition to imposing huge fines on companies, various government services will also be blocked. Institutions with wage arrears will be notified within 3 to 10 days. The Ministry of Manpower and Indigenization said action would be taken if wages were not paid after 10 days.


Authorities said they would take stern action, including revoking the licenses of companies that repeatedly violate the law. 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 and new work permits will not be issued to companies whose wages are delayed for more than 2 months.

Companies that repeat the violation will be fined and downgraded to a lower grade. There is a provision to suspend the issuance and renewal of new work permits if the salary is delayed for more than 3 months. Cases of delay in payment of wages for more than 6 months will be referred to the Public Prosecution. 

According to the Wage Security Scheme or WPS, salaries have to be disbursed through banks. This system is linked to the Ministry of Manpower so that companies that do not pay can be informed in a timely manner. The WPS system was introduced in the UAE in 2009 in the wake of an increase in the number of salary arrears cases.

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