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UAE firms fined for 33,000 cases of unpaid salaries in 2023
Meanwhile, 509 companies were referred to Public Prosecution for offering unlicensed services
Authorities in the UAE detected 33,000 cases of companies failing to pay salaries to employees through the Wage Protection System (WPS) in 2023. The Ministry of Human Resources and Emiratisation (MoHRE) said it imposed “administrative penalties” on the companies.
The ministry did not specify the nature of administrative penalties or fine amounts it slapped on companies for non-compliance with the WPS — an electronic salary transfer system done via approved financial institutions. All employers registered with the MoHRE are required by law to subscribe to the system and pay employees’ salaries through it. Penalties for violations include suspension of work permit issuance and fines.
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The ministry said it referred 509 companies to the Public Prosecution for offering services they were not licensed for in 2023. Fifty-five cases of companies recruiting workers without a licence were also detected. Five social media accounts were shut for recruitment without a licence.
The MoHRE imposed administrative penalties in over 1,200 cases of providing false documents or data to the ministry to obtain a service; and 76 cases of worker accommodations failing to comply with standards.
Overall, the ministry recorded 75,000 violations during the 430,000 inspection visits its inspectors carried out last year. About 1,077 companies were reported since mid-2022 for violating Emiratisation decisions and policies, including fake Emiratisation.
Additionally, 185 cases were flagged for non-compliance with the Midday Break, which banned having workers perform their duties around noon under direct sunlight and in open spaces from June 55 to September 15. In another 30 cases, firms failed to report work injuries, occupational diseases, or death of a worker to the ministry. In three cases, firms were found unlawfully passing on recruitment expenses to workers, among other violations.
MoHRE received approximately 1,500 complaints through the official channels provided to the community.
The ministry raised awareness among more than 2 million workers and over 9,000 employers.
In a statement, the ministry applauded “the level of commitment with labour market legislation among the vast majority of private-sector companies, which underlines the awareness among employers regarding the impact these laws have on stabilising work relations and increasing productivity”.
“The Inspection Sector at MoHRE … works under specific ethical and legal labour inspection standards, most notably, ensuring the employer or a representative is notified of the inspection date, unless the mission requires otherwise; inspectors introducing themselves, respecting the law, and performing their duties responsibly, while respecting standards of integrity and trust; as well as confidentiality and refraining from disclosing company secrets.”
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