DUBAI // A decree aimed at ensuring people receive their wages in full and on time takes effect on Monday.
The wage protection decree was implemented by the Ministry of Human Resources and Emiratisation.
“The decree fairly contributes towards labour market stability as it safeguards employees while keeping business owners’ interests,” said Saqr bin Ghobash Saeed Ghobash, Minister of Human Resources and Emiratisation, state news agency Wam reported.
“Salaries paid on time is a major contribution towards labour rights protection, which is highly recognised by the UAE.”
The decree is focused on companies with more than 100 workers and ensures staff are paid within 10-days of their registered payday.
Failure to do so will result in the ministry blocking further work permits from the 16th day of the delay.
A company that does not pay wages a month from the due date then enters into a “refrainment period”, when judicial authorities may take further punitive action.
The ministry can also penalise other companies owned by the defaulting employer and their business.
Continued failure to pay wages could result in the company’s bank guarantee being used, downgrading in its category and allowing staff to quit. “If the company fails to pay wages for 60 days from the due date, then administrative fines shall follow, in addition to registered fines for failing to pay wages a month from the due date,” said Maher Al Obed, assistant undersecretary for the inspections sector at the ministry.
Fines range from Dh5,000 for each worker whose wage has been delayed to Dh50,000 for issues such as groups of workers protesting about unpaid wages after 60 days.
Hiring bans can be lifted if the company completes payment within the first late month.
The hiring ban lasts for 60 days if companies fail to pay wages for more than two months.
According to the decree, repeat offenders face a double-duration ban.
“Companies do this kind of thing because they think they can get away with it,” said Sajid Akhtar, an office supervisor in Karama.
“But if a few companies are fined or suffer consequences then they will be more careful and pay their workers on time.”
Ritesh Choudry, an IT professional in Jumeirah Lakes Towers, said: “Companies should have proof of reserve cash to be able to pay their staff.
“If they don’t, they should be banned from hiring people in the first place.”
Companies employing fewer than 100 workers will face similar action only after non-payment after a 60-day period.
If these companies repeat such violations in the same year they will then be subject to -penalties associated with businesses with larger workforces.
nhanif@thenational.ae