[UAE] 7 new penalties for delaying payment of wages

[UAE] 7 new penalties for delaying payment of wages
04 Mar 2022

In the UAE, the Ministry of Human Resources and Emiratization (MoHRE) has issued a decree introducing new penalties against employers who fail to pay wages on time, Khaleej Times reports.

Employers with 50 or more workers will be subject to field inspections from the ministry and warnings if wages remain unpaid 17 days after the due date. For smaller establishments, the issuance of work permits will be suspended. Penalties escalate with further delay in paying wages.

The seven penalties introduced as per the new decree are as follows:

1. Issuance of official reminders: Companies will receive official reminders to pay wages after the third and 10th day from the due date.

2. Suspension of the issuance of new work permits: In cases of non-compliance in payment of wages after the 17th day from the due date. Establishments with 50 or more workers can be subject to inspections from the Ministry as well as warnings.

3. Notice to Public Prosecution: Notification to be issued to the public prosecution in order for the legal measures to be initiated against employers who have failed to pay wages for more than 30 days after the due date. These measures will be initiated against companies that employ from 50 to 499 workers, or those with 500 and more workers and otherwise have been classified as high-risk establishments by the MoHRE.

4. Suspension of work permits for companies under the same breaching owner: All companies who do not pay wages for two months with the suspension of issuance of new work permits in the breaching establishment.

5. For repeated non-compliance: In the case of a company repeating any of the violations or accumulating more than one violation, it can be subject to inspections from the Ministry, a downgrade to a lesser category and fines.

6. Suspension of work permits renewal: Companies that do not pay wages for more than three consecutive months will not be able to issue or renew work permits.

7. Referral to Public Prosecution and fines: If an inspection visit after six months of non-compliance reveals the absence of a work relationship.

 

Source: Khaleej Times

In the UAE, the Ministry of Human Resources and Emiratization (MoHRE) has issued a decree introducing new penalties against employers who fail to pay wages on time, Khaleej Times reports.

Employers with 50 or more workers will be subject to field inspections from the ministry and warnings if wages remain unpaid 17 days after the due date. For smaller establishments, the issuance of work permits will be suspended. Penalties escalate with further delay in paying wages.

The seven penalties introduced as per the new decree are as follows:

1. Issuance of official reminders: Companies will receive official reminders to pay wages after the third and 10th day from the due date.

2. Suspension of the issuance of new work permits: In cases of non-compliance in payment of wages after the 17th day from the due date. Establishments with 50 or more workers can be subject to inspections from the Ministry as well as warnings.

3. Notice to Public Prosecution: Notification to be issued to the public prosecution in order for the legal measures to be initiated against employers who have failed to pay wages for more than 30 days after the due date. These measures will be initiated against companies that employ from 50 to 499 workers, or those with 500 and more workers and otherwise have been classified as high-risk establishments by the MoHRE.

4. Suspension of work permits for companies under the same breaching owner: All companies who do not pay wages for two months with the suspension of issuance of new work permits in the breaching establishment.

5. For repeated non-compliance: In the case of a company repeating any of the violations or accumulating more than one violation, it can be subject to inspections from the Ministry, a downgrade to a lesser category and fines.

6. Suspension of work permits renewal: Companies that do not pay wages for more than three consecutive months will not be able to issue or renew work permits.

7. Referral to Public Prosecution and fines: If an inspection visit after six months of non-compliance reveals the absence of a work relationship.

 

Source: Khaleej Times

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