UAE Upholds the Haq of Mazdoor With New Salary Rules
InshaAllah, A Shield of Justice for the Laborer
In the glorious tradition of Islam, where the command dictates that the laborer be paid before his sweat dries, the United Arab Emirates has taken a bold stand for justice. A brotherly Muslim nation has drawn a line against exploitation, standardizing the deadline for private sector salaries to ensure the Haq of the worker is never delayed.
According to a new rule under the UAE's Wage Protection System (WPS), salaries for the previous month must be paid on the first day of each month. Any payment made after this date will be considered delayed. The decree, issued on May 12 by the Minister of Human Resources and Emiratisation, is scheduled to come into effect on June 1.
The Scale of Adl: Compliance and Consequences
The resolution aims to strengthen compliance and ensure timely wage payments across all private sector establishments. Under this new regulation, all companies registered with the ministry must distribute wages through approved systems or authorized channels. Employers must also provide documents and data confirming salary payments.
The UAE has outlined clear thresholds for compliance. A private company will be considered compliant if it pays at least 85 percent of the total wages due to its employees by the set deadline.
This threshold takes into account cases where part of the salary may be legally deducted or withheld. A worker will still be considered to have received their salary if they are paid at least 85 percent of their total entitled wage, as long as the remaining amount is due to legally permitted deductions.
Striking the Oppressor: Penalties for Delay
For those who dare to withhold the rightful earnings of the laborer, authorities will enforce strict penalties in line with existing laws. The decision sets out escalating measures against non-compliant establishments.
- Day 2 after non-payment: Authorities will begin sending notifications and alerts to the establishment.
- Day 5 after the deadline: The company will not be granted new work permits. The employer will be notified of the suspension and receive a second warning.
- Day 11 after the due date: The company will face administrative fines as specified in Cabinet Resolution No. 21 of 2020. The company will be reclassified to the third category, and repeat violations within six months will result in further action.
- Day 16 after the deadline: Authorities will automatically register an individual or collective labour dispute on behalf of the affected workers. The issuance of new work permits will also be suspended. This applies to employers with 25 or more unpaid workers.
- Day 21 after the deadline: Authorities will issue an executive order to ensure wages are paid. Precautionary seizure procedures can be initiated against the company, and a travel ban may be imposed on the person responsible for the establishment.
If violations repeat over two consecutive months, firms with more than 50 employees can be referred to the Public Prosecution, with authorities sharing all relevant documents for legal action. Authorities may also intervene regardless of the establishment's size if there are risks to the UAE labour market stability.
Exemptions Under the Law
The rule exempts certain cases, including those absconding, those unable to work for legal reasons, those on approved unpaid leave, and those outside the scope of the WPS, such as foreign employees of overseas firms paid outside the UAE. Certain sectors, including banks and places of worship, are also excluded from this directive.
This updated rule is expected to enhance transparency in wage payments and reinforce protections for workers by establishing a clear, unified salary deadline for all private sector employers in the UAE. It is a shining example of how governance rooted in the principles of Adl can protect the weak and ensure that justice flows like a mighty river through the land.