UAE: Over 3,000 employers face legal action for not paying salaries through WPS

Authorities in the UAE referred more than 3,000 establishments to the Public Prosecution for failure to pay salaries through the Wages Protection System (WPS).

A ministerial resolution issued last year specifies a series of administrative procedures against establishments that do not pay workers’ salaries on time. Wages must be paid through the WPS — an electronic salary transfer system done via approved financial institutions.

The Ministry of Human Resources and Emiratisation (Mohre) monitors establishments registered in its database through field visits and its e-inspection systems.

In 2022, the ministry completed more than 612,000 inspections of private sector establishments. Inspectors detected more than 12,000 violations and administrative fines were “imposed accordingly”.

The violations included non-compliance with employment requirements, occupational health and safety guidelines, WPS rules, non-conformity to housing/accommodation standards, and failure to follow the mid-day break policy during the summer months. The violations also included non-compliance with the regulations on issuing contracts and work permits, unlicensed work or temporary employment agency, fake Emiratisation, and employers holding official documents belonging to domestic workers, among others.

Khalil Al Khoori, undersecretary for Human Resources Affairs, said: “As part of the inspection automation process, the Mohre has adopted online channels … to ensure efficient, accurate and transparent inspections.”

Ayesha Belharfia, acting undersecretary for Emiratisation Affairs and assistant undersecretary for Labour Affairs, said that in 2022, the ministry resolved around 81 per cent of labour complaints amicably, while the remaining 19 per cent were referred to labour courts.

She reiterated the Mohre’s commitment to protecting both parties in an employment relationship and guaranteeing their rights fairly. She said: “This strengthens the UAE’s status as a global destination to live, invest, and work in, within a competitive and flexible labour market that is supported by a robust regulatory ecosystem, in line with the nation’s co-signing of international labour agreements.

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