New amendment to the WPS to ensure workers get wages on time

New amendments to the WPS to ensure workers receive wages on time

A new amendment to the UAE's Wages Protection System ensures that workers receive their salaries on time.

The Ministry will warn the institutions that do not comply with the conditions.  If no action is taken, the issuance of new work permits to such establishments will be stopped.

The new amendment provides for administrative action against companies that fail to pay workers' salaries on time

The penalty levied depends on the delay in payment of workers' salaries, the size of the establishment, and the number of unpaid employees.

The amendments include phasing out procedures against erring establishments employing 50 or more people.  The ministry will inform the public prosecution and send details of the establishment "to relevant local and federal authorities for further legal action".

“All non-compliant establishments regardless of size, that fail to pay wages four months after the due date will face suspension of new work permits.

If the owner operates other entities listed on the WPS in the UAE, similar penalties apply to each.  This will be done after notifying the affected establishments about the suspension of work permits," the ministry said.

If the institution repeats the same violation within six months, an administrative penalty will be imposed and the institution will be downgraded to the third tier under MoHRE's classification system.

The new amendment stipulates that the Ministry of Human Resources and Emiratisation will monitor firms registered in its database, regardless of size, to ensure that salaries are paid on time.