In 2023, authorities in the UAE have detected a staggering 33,000 instances of companies failing to pay salaries to their employees, utilizing the Wage Protection System (WPS). The Ministry of Human Resources and Emiratisation (MoHRE) has disclosed that it took punitive action against these companies, imposing what it terms “administrative penalties.”
However, the specifics regarding the nature of these penalties or the fines levied against the non-compliant companies were not divulged by the ministry. The WPS, an electronic salary transfer system conducted through approved financial institutions, is mandated by law for all employers registered with the MoHRE. Penalties for violations include fines and the suspension of work permit issuance.
Additionally, the ministry reported referring 509 companies to the Public Prosecution for offering services without the requisite licenses in 2023. Furthermore, 55 cases involving companies recruiting workers without licenses were identified, with five social media accounts shut down for unlicensed recruitment.
Administrative penalties were imposed in over 1,200 cases involving the provision of false documents or data to the ministry for service acquisition, along with 76 cases where worker accommodations failed to meet established standards.
In total, the ministry recorded 75,000 violations during the 430,000 inspection visits conducted by its inspectors last year. Notably, approximately 1,077 companies were reported for violating Emiratisation decisions and policies, including instances of fake Emiratisation.
Moreover, 185 cases were flagged for non-compliance with the Midday Break, a regulation prohibiting outdoor work under direct sunlight around noon from June 15 to September 15. Thirty cases involved firms failing to report work injuries, occupational diseases, or worker deaths to the ministry, while three cases were found to involve firms unlawfully passing on recruitment expenses to workers.
MoHRE also received around 1,500 complaints through official community channels, prompting actions to address labor law violations. The ministry undertook extensive awareness campaigns, reaching over 2 million workers and more than 9,000 employers.
In a statement, the ministry commended the majority of private-sector companies for their commitment to labor market legislation, emphasizing the positive impact of these laws on stabilizing work relations and enhancing productivity.
