Wage pro­tec­tion law starts to­day

7 Days in Dubai - - NEWS - ma­hak@7days.ae

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.

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