Tuesday 18 October 2016

UAE wage protection law takes effect on October 2016

ABU DHABI – A newly launched wage protection decree takes effect in the UAE on Monday (October 3), the Ministry of Human Resources and Emiratisation announced on Sunday.
http://expatmedia.net/ By: staff reporter Published Date: October 2, 2016
Under the new decree issued by the Ministry of Human Resources and Emiratisation, companies that employ more than 100 people must pay workers’ wages within 10 days of the agreed date or be banned from getting new worker permits.
“The decree fairly contributes towards labour market stability as it safeguards employees while keeping business owners interests, salaries paid on time is a major contribution towards labour rights protection which is highly recognised by the UAE,” said Maher Al Obed, Assistant Undersecretary for the Inspections Sector.
The ministry also reiterated that it will not allow transactions for companies that do not register with its Wage Protection System.

NEW RULES FOR COMPANIES WITH MORE THAN 100 EMPLOYEES

Non-payment of salaries: Should a company apply for new worker permits 16 days after committing this offence, their request will be denied.
Non-payment of salaries for 30 days: The errant company will be referred to court, and all transactions with other companies belonging to the owner will be stopped. The company owner will also be banned from registering any new company. The ministry will also encash the company’s bank guarantee after the first month of delayed wages and downgrade its rating to Category 3, which means costlier processing fees
Non-payment of salaries for 60 days: Errant companies will be fined Dh5,000 for each worker with 60-day unpaid salary. The maximum fine is Dh50,000 for a company that delays salary payment for more than two months
Non-payment of salaries for more than 60 days: A 60-day ban on issuance of new permits will be slapped on errant companies. However, the ban will be lifted if a company pays delayed salaries within the first 30 days.
Regular salary payment delays: The length of ban on issuance of new permits for an errant company will be doubled.

NEW RULES FOR COMPANIES WITH LESS THAN 100 EMPLOYEES

Non-payment of salaries for 30 days: The company will be banned from applying for new work permits
Non-payment of salaries for 60 days: The company will be referred to the court
Repeat offence in a year: The company will be fined Dh5,000 per worker with delayed wages. The maximum fine is Dh50,000 for a company that delays salary payment for more than two months. ICA/Expat Media
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