The Ministry of Human Resources and Emiratisation (MOHRE) announced that 99% of employees in private sector establishments registered with the ministry are now covered by the Wage Protection System (WPS).
According to a Khaleej Times report, MOHRE clarified that there are eight specific cases where companies are exempt from implementing WPS: when an employee files a wage-related labour complaint referred to the judiciary; if a report of absence from work is filed; if the employee is new (within 30 days of the wage being due); if the employee is on unpaid leave with proof; and for four types of establishments—fishing boats owned by UAE citizens, public taxis owned by UAE citizens, banks, and places of worship.
WPS, in collaboration with the Central Bank of the UAE since 2009, aims to ensure timely wage payments to employees through a reliable mechanism. This system allows MOHRE to monitor wage payments and ensure employers comply with agreed terms. Wages are transferred via banks, exchange companies, and financial institutions.
MOHRE emphasized its automated control and punitive measures to enforce WPS. Employers are electronically notified on the due date and followed up on the third and tenth day if wages are unpaid. By the 17th day of non-compliance, new work permits for the establishment are halted, and the case is forwarded to the Public Prosecution Office if wages remain unpaid after a month and a half. Repeated violations within six months can incur fines of up to Dh20,000.
MOHRE mandates that all private sector establishments pay wages through the electronic system by the first day of the month following the end of the wage period specified in the employment contract. Employers are considered late if wages are unpaid within the first 15 days from the due date.
In addition to WPS, the UAE has issued a guide, “Know Your Rights,” to inform workers of their rights and duties. The guide includes crucial points such as the prohibition of charging workers recruitment fees, the necessity of signing employment contracts, and the right to contact MOHRE for wage-related issues.
Workers can seek assistance through the Labour Counselling and Claims Centre via the toll-free number 80084 or MOHRE’s website and smart applications. Labour lawsuits filed by workers or their heirs are exempt from court fees if the claims do not exceed Dh100,000.
