Ask Gulf News: What happens when a company delays paying employee wages?

Question: What are the Procedures and Measures (MOHRE) applies for the establishments that Delay Wage Payment according to the new law? Please advise. 

Answer: According to Annex No. (1) of The Ministerial Resolution No. (340) of 2026 Concerning the Wage Protection System, the Ministry of Human Resources and Emiratization (MOHRE) impose penalties on the establishments which delay its employees wage payment. These procedures depend on the length of the delay as follows: 

Day 1: Electronic monitoring of the establishment begins.

Day 2: MOHRE issues automated notifications and warnings to non-compliant firms to pay wages.

Day 5: MOHRE suspends the issuance of new work permits to the violating establishment with notification to the owner of the reason for suspension and a warning to pay. 

Day 11: Fines are applied. Repeated violations within a six-month period cause the company to be downgraded to the Third Category. 

Day 16: For establishments with 25 or more workers, the ministry registers official labour disputes and automatically suspends all work permits.

Day 21: More severe legal actions apply, so that with fewer than fifty (50) workers, including issuing an executive instrument against the establishment, precautionary attachment procedures against the establishment, travel bans on the person in charge, and potential referral to the Public Prosecutor especially if the number of workers in the establishment exceeds fifty (50) workers.