Dubai: The Ministry of Human Resources and Emiratisation (Mohre) in the UAE has announced a new law against the late payment of salaries. The ministry informed that penalties will be imposed on employers who fail to pay wages on time. Penalties include suspension of new work permits, a notice to the public prosecution and fines.
Employers with 50 or more workers will be subject to field inspections from the ministry and warnings if wages are not paid 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.
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Under the new law, employers will be notified on the third and 10th day after the due date for payment of wages. An employee’s salary shall be due starting from the first day of the month following the registered payday as specified in the employment contract. If the due date is not mentioned in the employment contract, workers must receive their wage at least once a month.
Companies registered with the ministry will be given a three-month grace period to comply with the new law. It also urged all companies to pay salaries through WPS. WPS is an electronic salary transfer system that allows companies to pay salaries via banks or exchanges and other approved financial service providers.
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