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Ministerial Order No. 739 of 2016 on Wages Protection.

Main Region

First Region

United Arab Emirates
Wages
2016-09-29
National
Regulation, Decree, Ordinance

Second Region

It reconfirms institutions registered with the Ministry to pay their employees' wages according to the Wages Protection System.
Failure to pay an employee's salary within 10 days of the due date will amount to late payment.
Failure to pay an employee's salary within one month of the due date will amount to a refusal to pay the salary (unless a shorter period is specified under the contract).
For employers with over 100 employees, where the Ministry discovers that the employer has delayed in paying an employee's salary, it will, for a delay of at least:
10 days, issue the employer with a warning which provides that the Ministry will not issue any permits after payment has been delayed for 16 days;
16 days, block the employer's ability to grant work permits (Late Payment Penalty);
30 days, impose a variety of additional sanctions including informing the judicial authorities and any other relevant authorities to exercise caution when dealing with the employer, refusal to register new licences for the employer, a reduction in the employer's classification to the third class, an extension of the ban on granting work permits to the remaining establishments of the employer without notification and/or ban on transferring employees to other employers (Refusal Penalty); and
60 days, impose administrative fines on the employer.
Repeals Ministerial Order No. 788 of 2009 concerning wages protection.

Entry dates region

    Date of entry into force
    2016-09-30
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