The Ministry of Human Resources and Emiratisation has issued a new decree that will take effect from October 2016, to ensure employees’ wages are fully paid within a period not exceeding 10 days from the due date registered in the Wages Protection System (WPS). Companies that employ over one hundred workers must pay wages within a period not exceeding 10 days.
If they fail, the ministry will stop granting them any additional work permits starting from the 16th day from the date of delay. Administrative fines reach AED 5,000 per worker’s delayed wage and a maximum of AED 50,000 in cases that include multiple workers complaining about delayed wages for over 60 days.
The new decree is one of the many steps the UAE is taking to protect its workforce – this will help in attracting foreign expertise which is part of the country’s economic diversification plan. Additionally, firms seeking to maximize their profits are most interested in locating to countries with labour markets that adhere to international standards.