UAE becomes strict over compliance with Wages Protection System

Establishments that delay payment of salaries or fail to comply with WPS will face penalty

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As part of the efforts towards putting in place a legislative structure to regulate the labour market, the United Arab Emirates (UAE) has become strict in terms of establishments complying with the Wages Protection System or WPS.

That means, if establishments do not pay salaries to their employees on time, action will be taken against them, basis their size and the number of employees whose salaries have been delayed or not disbursed.

Certain provisions of the WPS have been amended to this effect. This will also ensure that some balance is maintained in employer-employee relationships and the rights of both parties are protected.

There will be strict and close supervision of organisations and establishments registered with the Ministry of Human Resources and Emiratisation (MoHRE), irrespective of how big or small they are, to ensure that their employees receive their salaries on time.

This monitoring will be ensured via field visits as well as electronic monitoring and inspection systems.

The Ministry will also send reminders and notifications to the establishments found to be non-compliant. If these establishments fail to mend their ways, no new work permits will be issued to them. Owners of such establishments who run other organisations under WPS will also face similar penalties, after they are notified of the suspension of work permits.

If organisations violate the WPS norms within six months, they will face a fine and the establishment will be degraded to Tier 3 as per the Ministry’s system of categorising establishments.

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