UAE labor law: Companies could be fined over failure to pay salaries within 15 days of due date

The UAE Digital Government has confirmed that wages are considered late if they are not paid within the first 15 days after they are due unless a shorter period is specified in the worker's contract. The Ministry of Human Resources and Emiratisation (MOHRE) has stated that employers must pay their employees on time, follow the terms of their contracts, and comply with Wage Protection System (WPS) to boost employee output and ensure stability between employers and employees. Violations will result in sanctions that range in severity depending on the number of employees at the facility. According to government representatives, employers' willingness to pay wages under the laws governing labor relations is a significant factor in achieving a harmonious working relationship. Acting MOHRE Assistant Undersecretary for Inspection Affairs Mohsen Al Nassi stressed the importance of employers ensuring workers are paid on time for their services. According to the MOHRE, companies can be penalized 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 penalty of Dh1,000 per employee. The MOHRE app, downloadable from the App Store and Google Play, allows businesses to check on their current standing, including the number of unpaid employees, the ratio of unpaid employees, and any applicable requirements. BKM/ Expat Media
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