UAE implements new wage protection system; violators to be held accountable, fined

The Ministry of Human Resources and Emiratisation has set forth its new wage protection scheme to benefit workers.

The decree was launched by Minister of Human Resources and Emiratisation, Saqr bin Ghobash Saeed Ghobash, which aims to ensure that employees receive full payment of their salaries.

Maher Hamad Al Obed, Assistant Undersecretary, Ministry of Labor for Inspections Affairs, told Arabic daily Emarat Al Youm the authority had taken all-necessary arrangements to start implementing the resolution with new policies and measures introduced to strengthen the protection of workers ' rights in obtaining their wages without delay and in accordance with its due date.

Al Obed stressed the importance and role of the resolution, which will contribute to other Ministry policies, bringing greater stability in the employment process, therefore increasing productivity, which is beneficial to the employer and the employee.

He noted that the procedures will be in effect from Monday for companies that employ more than 100 workers.

Al Obed added that the Ministry will send text message alerts for wages that have been delayed for more than 10 days.

He added that the Ministry would stop dealing with such establishments if wages have been delayed over 15 days.

“Two main scenarios should be considered in this matter. Firstly, salary delays occur usually if the company fails to pay wages a month from the due date, the second, which refers to completely refraining wages, starts after entering into the second month. However, the decree shall refer to each case in a different matter,” Al-Obed said.

If a company delays wages for a month from the due date, it has “entered into a refrainment period”, and the ministry will inform judicial authorities and other related parties to take all necessary punitive measures against the violating company.

“If the company fails to pay wages for 60 days from the due date, then administrative fines shall follow, in addition to registered fines for failing to pay wages a month from the due date, as stated above in the first scenario,” Al-Obed added.

He emphasised further action would be taken including extending the ban to stop dealing the with the rest of the employer's facilities.

He added that the Ministry would ban the registration of any new facility of the company’s owner, which committed the violation.

He also said further actions required for non-liquation of the bank guarantee of the installation

He added also the established category would be descended to third category within of the classification system of the enterprises of the MoE and enable workers to move from one employer to another.

Regarding companies, which have less than 100 workers, Al Obed said that in the event that the ministry was sure that such companies delayed paying the wages the Ministry would halt dealing with them.

He added not only that but will apply against them the present measures which stipulates in case delaying of the payment of wages for one month the ministry will stop dealing with it.

He added and in case delaying for more than one month it will be referred to the judicial departments.

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