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Wage Protection Decree Implemented

6/10/2016

The Ministry of Human Resources and Emiratisation now implements the newly wages protection decree.

AbuDhabi: The Ministry of Human Resources and Emiratisation now implements thenewly wages protection decree. The decree fairly contributes towards labourmarket stability as it safeguards employees while keeping business ownersinterests, salaries paid on time is a major contribution towards labour rightsprotection which is highly recognized by the UAE.

Thedecree highlights companies employing over 100 workers. Such companies must paywages within a period not exceeding 10 days from the registered payday in the(WPS) wages protection system, if they fail, the ministry will stop grantingthem any additional work permits starting from the 16th day of delay. If wagesdelays a month from the due date, the ministry shall inform the judicialauthorities and other related parties to take all necessary punitive measuresagainst the violating company, additionally, the ministry halts other companiesowned by the same employer, plus forbid any upcoming projects foreseen by thesame owner. Furthermore, if a company continues to refrain wages, the ministryshall take necessary measures to use the company’s bank guarantee, then slappedby a downgrade to a third category company, plus enable their workers’ mobilityoptions to other companies.

Ifthe company fails to pay wages for 60 days from the due date, thenadministrative fines shall follow – which reach Dh5000 per worker’s delayedwage pay, stretching a maximum of Dh50,000 dirhams in events which includemultiple workers protesting about deferred wages past 60 days.

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