What are the legal consequences of delaying salaries in the UAE?


Undoubtedly, the delay in disbursing salaries puts the employee or worker in front of major and embarrassing life challenges.

The salary solves many problems of the necessary life requirements that depend on it to cover them, which requires finding quick solutions to the problem of delayed salaries because in delaying them a detraction from the rights of the worker, which is rejected by laws The UAE and its legislation.

This article shows the rights recognized by the UAE legislator in accordance with Federal Labor Law No. (8) of 1980, regarding the regulation of labor relations with regard to legal procedures for delayed salaries and the penalty for delaying salaries.

Minimum wage

The UAE Federal Labor Law did not legislate with a categorical text to set a minimum or maximum wage, and the UAE Labor Law did not clarify the percentage of the basic salary of the total salary to be paid to the employee, but the law indicated the need for wages to meet the basic needs of employees, and the determination of the salary percentage depends on The agreement between the worker and the employer, and the signing of the work contract is considered acceptance of the wage rate agreed upon in accordance with the contract.

Basic salary and gross salary

The worker’s acceptance of the basic wage included in the contract means his implicit acceptance of the end-of-service amount determined by the Labor Law based on the basic salary, but in the event that the basic wage rate is not specified, and the salary allowances are not clarified in the work contract, the employer is obligated to compensate the worker when calculating his end-of-service wage of the gross salary.

Every worker or employee has the right to receive his full salary on the date of disbursement, and without any delay, because in delaying the salary there are fines and accounting stipulated by law through the wage protection system from this date.

In the event that the contract does not stipulate a period of time for the worker to be entitled to his salary, the employer must pay the worker’s wages once every fourteen days, in the national currency of the UAE, and during working days.

Wages Protection System and Fraud Fines

The Wages Protection System is a database and information system developed by the Central Bank of the United Arab Emirates using a technology that allows the Ministry to see the movement of wage payments to workers in the private sector. In the case of non-compliance with the payment of wages, procedures shall be applied in which financial fines are imposed.

According to Ministerial Resolution No. 15 of 2017, in the event of circumvention of the wage protection system, and failure to pay it, the fine shall be applied as follows:

1- A fine of (5000) dirhams for each worker, and a maximum of (50,000) dirhams in the event that incorrect data is entered for the purpose of fraud.

2- Failure to pay the wages due to the worker through the Wages Protection System, the penalty for which is a fine of (1,000) dirhams for each worker.

3- A fine of (5000) dirhams for each worker in the event that the facility forces the workers to sign fictitious documents stating that they have received their dues.

Late salaries - delayed salaries in the private sector

* If the employer does not pay the salary of the worker or employee within the first ten days from the time of its entitlement, he is considered to be in arrears in the payment of wages.

* If the employer does not initiate payment of the worker’s salary within a month from the entitlement, it shall be considered as having suspended payment, unless it is stipulated in the contract for a shorter period.

Establishments shall prove the payment of the wages of their employees whenever requested to do so.

Companies that have less than a hundred workers and are late in paying wages must take the measures in force in the Ministry towards them, which are:

1- Stop issuing work permits.

2- Fine according to the circumstances.

3- Referral to court.

friendly settlement

There are three stages to settling disputes between an employer and domestic workers:

1- In the event of a dispute between the parties to the contract, they must resort to an amicable settlement.

2- Refer the dispute to the Ministry of Human Resources and Emiratisation in the event of failure of the amicable settlement to take what it deems appropriate to settle the dispute amicably within two weeks in accordance with the law.

3- Resorting to the litigation stage in the event of the failure of the conciliation, and the suit shall not be accepted before the competent court before following the procedures stipulated in this law and its executive regulations.

Punitive Measures - Penalty for Delaying Salary UAE

The Ministry of Human Resources and Emiratisation has identified a number of measures to be taken in the event that the facility with 100 or more workers is late in paying the wages for a period of 10 days from the due date, including the following:

1- Alert the facility that it will be suspended from granting any work permits, starting from the sixteenth day of the delay date.

2- Alert the facility that is late in paying the salaries of its workers until the end of the month from its due date that it has reached the stage of cessation and non-payment.

3- Ceasing the ministry's dealings with the rest of the establishments that follow the employer.

4- It is forbidden to open a register in the ministry for any new facility.

5-Liquidation of the bank guarantee provided by the facility that does not respond to the alert, starting from the month following its cessation of payment.

6- Downgrade to Category Three.

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