Protection system

UAE changes Wage Protection System provisions

The resolution also states that the MoHRE will monitor establishments registered in its database, regardless of their size, through field visits and the electronic monitoring and inspection system to ensure that it pays its time employees. The ministry will also issue reminders and notifications to non-compliant establishments, and in the event that no action is taken following receipt of the notifications, issuance of new work permits for those establishments will be suspended.

Khalil Al Khoori, Acting Under-Secretary for Human Resources Affairs at MoHRE, said: “The release of the Ministerial Resolution is part of the Ministry’s efforts to develop the legislative structure regulating the UAE’s labor market, which leads the Global Competitiveness Reports because of its efficiency, flexibility, and creating an attractive environment for employers and talented workers.This is all the more true as it guarantees in a balanced way the rights and obligations of both parties to the contractual relationship.

He noted that the resolution aims to strengthen the balance and long-term stability of the relationship between employers and employees, in accordance with the rights and responsibilities set out in the contracts between the two parties. “He mainly focuses on meeting the deadlines and the amounts of wages agreed in these contracts,” he explained.

Al Khoori commended compliant establishments, saying, “It demonstrates awareness of the importance of complying with labor laws and their regulations.”

The changes outlined in the new resolution include procedures that will be progressively taken against establishments that employ 50 or more people, where the relevant public prosecutor will be notified, and information about the establishment will be sent to the competent local and federal authorities for further investigation. other legal actions. . The implementation will be monitored by the respective department of the ministry.

All non-compliant establishments, regardless of size, that fail to pay wages four months after the due date will face suspension of new work permits. If the owner operates other establishments listed with the WPS in the UAE, similar sanctions will apply to each of them, after informing the establishments concerned of the suspension of work permits, taking into account the unity of the partners.

If the establishment repeats the same violation within six months, an administrative fine will be imposed in accordance with Cabinet Resolution No. 21 of 2022, and the establishment will be downgraded to level three (3) under the classification system of MoHRE establishments.

The amendments also allow establishments to submit requests for exemption from the transfer of their wages through the WPS in two new cases – seafarers/seafarers working on board ships/vessels and workers of foreign establishments or their subsidiaries operating in the country who receive their salaries from abroad. the country, subject to the consent of the workers.

These cases are in addition to the previously exempt cases, which are fishing boats owned by UAE nationals, public taxis owned by UAE nationals, banks and places of worship.