Wage protection law starts today
Firms that fail to pay employees on time will be fined and eventually be stopped from trading under new measures being introduced from today. Under the new wage protection decree, announced earlier this year by the Ministry of Human Resources and Emiratisation, a delay of 10 days or more after payday will trigger fines of Dhs5,000 for every employee not paid. A series of penalties are also set out if staff are not paid in the days after that. After 16 days, firms will be prevented from hiring new employees; after one month authorities will be brought in and the company and any subsidiaries can be prevented from trading. Fines will also rise to Dhs50,000 per employee for cases that are not resolved within 60 days. The new decree will apply to every company employing more than 100 people. “If the company fails to pay wages for 60 days from the due date then administrative fines shall follow, in addition to registered fines for failing to pay wages a month from the due date,” said Maher Al Obed, Assistant Undersecretary for the Inspections Sector. For companies employing fewer than 100 staff, the current regulations shall apply, which include work a ban on new work permits, fines and court referrals.