UAE: Salary delayed? These are the penalties on companies according to the Labour Law

Ministry of Human Resources and Emiratisation has stiff penalties, fines for salary delays

Last updated: November 12, 2020 | 14:03

2 MIN READ

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Labour laws in the UAE have been drafted to protect the rights of both the employers and employees.

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The Wages Protection System (WPS) is one example of mechanisms that help protect employee rights.

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The electronic transfer system ensures that salary payments are made on time.

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It is mandatory for establishments in the UAE to register within the WPS system.

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When is salary considered late? 10 days after the due date.

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When is salary considered unpaid? A month after the due date.

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What are the penalties?

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The companies face penalties and their case can be referred to the Labour Court if the wages are delayed by a month.

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If the company owner has other establishments, action will be taken against those as well.

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You can also look at other work opportunities in case your salary has been unpaid.

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The company can also face a fine of up to Dh50,000.

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The company can also face a fine of up to Dh50,000.

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You can also read out detailed guide on filing a labour complaint here: https://gulfnews.com/1.1598367448791

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