The UAE digital government has confirmed that the employer is considered late in paying the wages if he does not pay it within the first 15 days of the due date, unless it is stipulated in the work contract for a shorter period.
She added that the punitive measures vary according to the number of workers in the facility, requiring establishments registered with the Ministry of Human Resources and Emiratisation to pay the wages of their employees on their due date through the wage protection system approved by the Ministry.
She stated that the employee’s wages are due starting from the first day of the month following the expiry of the period on which the wage is specified in the work contract.
If the period is not specified in the employment contract, the employee must be paid at least once a month.
She stressed that every worker and employee in the UAE has the right to receive his full salary at the due date, and employers in the private sector are responsible for paying the salaries of their employees in full, without any delay, through the wage protection system, to avoid any violations and fines.
She pointed out that the Federal Labor Law does not provide for a minimum wage, but there are general references to the need for wages to meet the basic needs of employees.
Through its electronic platform, it reviewed the penalties imposed on companies that delay or fail to pay the wages of employees in the facility from the due date, including if the delay is on the 17th day after the due date, the procedure will be to stop granting new work permits to the facility with notification of the facility owner due to the suspension.
In the event that the non-compliant facility employs 50 or more workers, it is included in the payment of wages in the electronic monitoring and inspection system, as well as in the schedule of inspection visits, where the inspector carries out an inspection visit to the facility, as well as duly warning it.
In the event that the delay is one month from the date of maturity, and the facility employs 500 workers or more, as well as high-risk facilities according to the ministry’s classification, the procedure is to inform the concerned Public Prosecution and transfer its data to the competent authorities at the federal and local levels to take legal measures and follow-up by the competent teams in the ministry .
She referred to four categories that are excluded from the commitment to the wage protection system, as the employee who filed a labor complaint related to wages and referred to the judiciary, the employee against whom a report of work interruption was registered, the new employee within 30 days of entitlement to wages, and the employee who is licensed without pay during the period of leave are excluded. Provided that proof is provided.
It is worth noting that under the protection system, the wages of workers in private sector establishments are transferred through banks, exchange companies and financial institutions providing service, through the establishment of partnerships with the banking sector and financial institutions in the country.
The Wages Protection System was developed by the Central Bank of the United Arab Emirates with a technology that allows the ministry to create a database and information on the payment of wages to workers in the private sector, and to determine the extent to which the operating establishments are committed to paying wages in the agreed time and amount.
4 categories excluded from “wage protection”:
■ The employee who submitted a complaint referred to the judiciary.
■ The employee who is out of work.
■ The new employee within 30 days of entitlement to wages.
■ Licensed employee without pay.