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UAE labour law: Firms must pay salaries within 15 days of due date to avoid fines

Punitive measures will be taken against violators

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The payment of a worker’s wage is considered late if it is not released within the first 15 days of the due date, unless the work contract stipulates a shorter period, the UAE Digital Government has confirmed.

Authorities said according to the Ministry of Human Resources and Emiratisation (MOHRE), employers must pay workers’ wages on time as per the contractual agreement and should comply with Wage Protection System (WPS) that aims to increase workers’ productivity and ensure stability of the relationship among the two parties.

Punitive measures will be taken against violators which vary depending on the number of workers in the facility.

Officials said employers’ commitment to paying wages in accordance with the legislation regulating labour relations significantly contributes to building balanced relations between the two parties.

Mohsen Al Nassi, Acting Assistant Undersecretary for Inspection Affairs at MOHRE, earlier explained that WPS’ mechanism enables employers to smoothly fulfill their obligations towards their workers through a strategic partnership with the Central Bank of the United Arab Emirates.

He added that receiving wages on time is a key right of workers to which employers must commit.

“Disciplinary measures are applied to establishments that fail to address irregularities in line with the requirements. These actions are determined according to periods of delay, the establisment’s size and the number and percentage of unpaid workers,” said the official.

According to the MOHRE, companies can be penalised for not paying salaries on time. Entry of incorrect data in the WPS for evasion or circumvention attracts a fine of Dh5,000 per worker, with a maximum of Dh50,000. And failure to pay on due dates through the WPS attracts a fine of Dh1,000 per employee.

Al Nassi commended employers who are committed to paying wages according to requirements, and explained that this commitment reaffirms their mindfulness of the positive effect generated by adhering to the law, and its impact on an establishment, especially in terms of productivity.

Employers can view the status of an establishment – including the number and ratio of unpaid workers, and what is required of the facility in that regard – through the MOHRE app, which is available on Apple Store Online and Google Play.

The Ministry of Human Resources and Emiratisation organizes workshops and seminars to raise awareness about labour market legislation, including those related to WPS.

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