Khaberni - The UAE Ministry of Human Resources and Emiratisation has issued a new ministerial decision regarding the wage protection system, stating that the due date for paying private sector employees will be the first day of each Gregorian month for the preceding month, with any payment made after this date considered as a delay in wage payment, effective from June 1, 2026.
According to the ministerial decision, all private sector establishments registered with the ministry must pay wages through the approved wage protection system or any other systems adopted by the ministry for this purpose, in addition to providing documents and data that prove the payment process according to specified regulations.
The decision also sets clear criteria for measuring an establishment's compliance with the system, considering an establishment compliant if it transfers at least 85% of the total due wages to the workers on the due date.
Furthermore, a worker is not considered unpaid if they have received at least 85% of their salary, and the difference is due to deductions or legal discounts verified according to current legislations, without infringing on the worker's right to claim any due amounts.
The decision mandates implementing a series of escalating measures against establishments that are late in paying wages, starting with electronic monitoring and sending notifications and alerts starting from the second day of the due date, followed by halting the granting of new work permits for the establishment starting from the fifth day, with a notification to the employer about the suspension and a warning to make the payment.
These measures include imposing administrative fines as determined by Cabinet Decision No. 21 of 2020, in addition to categorizing the establishment in the third category if violations recur within six months, starting from the eleventh day from the due date.
If the delay continues until the sixteenth day from the due date, individual or collective labor disputes for affected workers are registered, along with stopping the issuance of work permits for targeted establishments, especially those employing 25 or more workers, or those operating in the construction, transportation, storage, security, cleaning, employment agencies, and domestic labor recruitment offices sectors.
The more severe penalties are applied starting from the twenty-first day from the due date, including referring violating establishments to the public prosecutor if they employ 50 or more workers and the violation is repeated, as well as issuing executive bonds to collect wages.
And taking precautionary seizure measures on the establishment, imposing travel bans on the responsible person, and notifying the competent authorities to take the necessary legal actions.
The decision exempts several cases from inclusion in the wage protection system, including workers who have labor lawsuits pending before the judiciary, those with a work absconding report, or those on unpaid leave.
The exemptions also include foreign workers who receive their wages outside the state at foreign establishments, in addition to labor obtained on work permits for a specific task not exceeding three months, fishing boats, public taxis owned by citizens, as well as banks and places of worship.
The decision allows establishments to delegate other parties to pay the wages of their workers, provided that the ministry is supplied with the data of the delegated party and the scope of the delegation, with the establishment remaining legally responsible in case of non-compliance with the payment deadlines.
The decision also includes issuing an operational guide by the Ministry's Agent for Labor Market Operations and Emiratisation Affairs, aimed at clarifying the mechanisms for implementing the decision's provisions, with the cancellation of Ministerial Decision No. 598 of 2022, and anything that contradicts the new decision's provisions.
Notifications from the second day and stopping of work permits on the fifth day for late payers
Fines and stricter categorization of establishments on the 11th day if salary delays recur within 6 months
Legal escalation from the 16th day.. labor disputes and referral to the prosecution on the 21st day against violators
