UAE TAKES STRICT ACTION AGAINST EMPLOYERS WHO FAIL TO PAY WORKERS

  • 25/08/2022

Dubai: The UAE has taken strict action against employers who owe their workers salaries. Salary delayed by more than 15 days will be treated as arrears. Apart from imposing a fine, the ministry said that permission to issue new visas will also be revoked. Then the government will start action against the companies on the 17th day, the ministry said.


The provision is to pay the workers through the Wage Security Scheme. The ministry also said that although the employment contract does not specify a specific day for payment of salary, it is mandatory to pay salary once a month. The ministry will stop issuing new visas to companies if they are 17 days late in paying salaries. The employer will be notified in advance.

The action against the employer will depend on the number of workers in the company. If a company employing more than 500 workers fails to pay salaries for more than one month, the action will be severe. Legal action against these companies will be handed over to the prosecution. The administration also stated that it is a serious violation of the law to not pay the workers for more than two months regardless of the type of company. The Ministry of Labor will suspend visa services with such companies and stop issuing new visas.

If the company ignores the warnings and measures and repeats the violation, the company will be fined. Such institutions will be ranked third in the Ministry's list. The ministry also said that if the institutions delay payment of wages for three consecutive months, then notice will be given to the institutions through online first.

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