Over 3,000 companies are facing legal action after UAE authorities sent them to Public Prosecution for failing to pay salaries through the Wages Protection System (WPS). Under this system, companies must transfer employee salaries electronically to their bank accounts.
WPS also allows the Ministry of Human Resources and Emiratization (MoHRE) to monitor salary payments and take legal action against employers who fail to pay on time.
Last year, MoHRE inspected over 612,000 private sector firms and found over 12,000 violations, leading to hefty fines. The violations included breaking the rules related to employment conditions, safety guidelines, and payment systems.
Some companies did not give a break during hot summer days. Employers were also found holding official documents of domestic workers unlawfully.
Acting Undersecretary for Emiratization Affairs and Assistant Undersecretary for Labor Affairs Ayesha Belharfia stated that the ministry addressed 81% of complaints while 19% were referred to courts in 2022.
She asserted that MoHRE is focused on safeguarding employers’ and employees’ rights because the UAE’s position as a premier location for living, investing, and working is reinforced by strong regulations that comply with international labor agreements.
