No less than 370 companies in Dubai have been blacklisted after failing to submit salary audit reports to the Ministry of Labour and Social Affairs.
Ahmad Mesmar, director of the Establishments Unit at the ministry, said: "We have requested these audits from 970 companies with 50 or more workers. Of these, 170 companies with 200 or more workers and 170 companies with 50 or more workers failed to respond, despite being asked to submit these audits on quarterly basis."
A labour ministry decision to ensure that workers of small companies in the construction and maintenance sector receive their salaries regularly came into force in early March.
Labour officials had stipulated that any company in these sectors employing 50 or more workers must submit audits and salary information to the ministry.
Earlier, the rule only governed companies that have more than 200 workers.
Dr Khalid Al Khazraji, undersecretary of the ministry, said the move reflects the ministry's determination to do away with the chronic problem of non-payment of salaries.
"The ministry is working out 14 more measures to ensure companies pay salaries on time. The ministry in cooperation with civic authorities and economic departments as well as other federal and local departments will enforce these measures.
"Under these measures, companies will not be able to get their licences renewed by the civic authority or economic department concerned before proving that their workers are paid on a regular basis."
Extra sanctions against offending firms include suspending their files with the ministry and denying them the right to bid for government projects.
It is estimated there are more than 3,500 companies nationwide with 50 workers or more, totalling more than 300,000 workers.
The fact that hundreds of workers in dozens of companies are still going unpaid has prompted these measures. Many recent criticisms have been levelled at labour ministry officials about failure to bring such firms to book.
However, business commentators believe with this move workers will be better protected as employers will know they cannot escape their responsibilities with regard to pay and conditions.
Under salary protection rules, the labour ministry ensures all reports submitted are issued by licensed auditors and actually show that salaries are paid regularly. Surveys among workers point to unpaid salaries as being the biggest headache.
Dr Al Khazraji has threatened to send some of his top officials back into training, saying he was disgusted by their lack of progress in taking action against firms which are failing to pay their staff on time.
370 firms in Dubai blacklisted over salary audit reports
370 firms in Dubai blacklisted over salary audit reports