Payday delay? Here are 7 penalties for employers delaying salary release

The UAE labor law introduces seven hefty penalties for businesses and firms delaying the salary release. The Ministry of Human Resources and Emiratization (MoHRE) has published a regulation imposing additional fines on employers that fail to pay their employees on time. Here are the new seven penalties that every employer and employee should be aware of: Issuance of official reminders: After the third and tenth days from the due date, companies will receive formal reminders to pay salaries. Suspension of the issuance of new work permits: In instances of non-compliance with salary payment beyond the 17th day from the due date, establishments with 50 or more employees may be subject to Ministry inspections and warnings. Notice to Public Prosecution: A Notification to the Public Prosecutor will be issued to commence legal action against employers who have failed to pay salaries for more than 30 days beyond the due date. These measures are imposed against businesses that have been identified as high-risk firms by the MOHRE. Suspension of work permits for companies under the same breaching owner: All companies who fail to pay their employees for two months will face a suspension of issuance for new work permits of any firm under the same owner who violated the labor law. For repeated non-compliance: If a company commits any of the above or accumulates more than one violation, the company will undergo Ministry inspections, relegation to a lower category, and penalties. Suspension of work permits renewal: Companies who fail to pay their employees for more than three months in a row will be unable to obtain or renew work licenses. Referral to Public Prosecution and fines: If an inspection visit after six months of non-compliance reveals the absence of a working partnership, the firm will be referred to a Public Prosecution. Additional fines will also be imposed. If you are experiencing any labor law violation under your employer, the Ministry has established a Labor claims and advising center to address complaints, legal questions, and assistance. You may reach the center by dialing 04 665 9999 to learn more about your rights as an employee. BKM/ Expat Media
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