Disbursing the salaries of “private” employees at the beginning of each month… and fines and travel bans for violators

The Ministry of Human Resources and Emiratisation issued a new ministerial decision regarding the Wage Protection System, stipulating that the first day of every Gregorian month be unified as the due date for wages for workers in private sector establishments, starting from June 1, 2026, with any payment made after this date being considered a delay in disbursing wages, and requiring establishments to pay salaries through the Wage Protection System or systems approved by the Ministry, according to specific controls that include transferring no less than 85% of the total wages due to workers during the specified period.

The decision, which was reviewed by Emirates Today, specified a series of gradual procedures and escalations against establishments late in paying wages, starting with electronic follow-up and warnings starting from the second day of the due date, then halting the issuance of new work permits for violating establishments on the fifth day, leading to the imposition of administrative fines, precautionary seizure of the establishment, and issuance of travel ban orders against the person in charge of the establishment, in addition to referring some cases to the Public Prosecution, especially when violations are repeated or large numbers of workers are affected.

In detail, the Ministry of Human Resources and Emiratisation issued Ministerial Resolution No. (0340) of 2026 regarding the Wage Protection System, and it will come into effect as of June 1, 2026, specifying the first day of each Gregorian month as a unified date for entitlement to wages for workers in private sector establishments for the previous month, and any payment made after this date is considered a delay in payment of wages.

The decision obligated all establishments registered with the Ministry to pay the wages of their workers on the due date through the wage protection system approved by the Ministry, or any other systems approved by the Ministry for this purpose, and to submit all documents and data to prove the payment of wages to their workers, in accordance with the controls and mechanisms determined by the Ministry.

The decision specified the percentages of commitment to pay wages, as the establishment is considered committed if it transfers at least 85% of the total wages due to workers during the specified period. The worker is not considered to have received his wages if less than this percentage of the value of his due wages is transferred, and the difference is the result of fixed legal deductions or deductions made in accordance with applicable legislation, without prejudice to the worker’s right to claim any amounts owed to him.

The decision excluded (11) cases from being counted in the wage protection system, most notably “the worker who has a labor claim related to wages that has been referred to the competent judiciary, or for which an executive document has been issued in accordance with the legislation in force, within the limits of the wage or period subject to the claim, the worker against whom a notice of absence from work is registered, for the duration of the report’s validity, and the worker who is on leave without pay during the approved leave period, provided that the Ministry is notified and the required documents are submitted in accordance with the approved controls.”

Procedures and measures

Regarding the procedures and measures resulting from delaying the payment of wages, the decision set a strict timeline that begins immediately from the due date and continues when payment is confirmed. The procedure is through continuous electronic follow-up of all establishments to ensure their commitment to paying the wages of their workers, followed by sending notices and alerts to non-compliant establishments to pay wages starting from the second day of the due date until payment is confirmed.

On the fifth day from the due date, granting new work permits to non-compliant establishments in arrears will be stopped, with the facility owner notified of the reason for the suspension and the obligation to pay immediately.

If the violation is repeated within six months, the administrative fine imposed in accordance with Cabinet Resolution No. 21 of 2020 will be applied on the eleventh day from the due date, and the establishment category will be converted to the third category in accordance with Ministerial Resolution No. 209 of 2022.

The procedures escalate on the sixteenth day from the due date, when a labor dispute (individual or collective) is automatically registered for the affected workers and the issuance of work permits is stopped to non-compliant establishments that employ (25) workers or more in all sectors, or establishments owned by the same employer when the total number of workers whose wages have not been paid therein reaches (25) workers or more, provided that the establishment’s activity is within specific sectors, namely: construction, transportation and storage, guard services, cleaning services, employment agencies, or offices. Recruiting auxiliary workers.

The procedures and measures reach their legal climax on the twenty-first day from the due date, when an executive bond is issued to pay workers’ wages in establishments whose number of workers is less than (50), or collective labor dispute procedures are taken if the number of workers is (50) or more, in addition to taking precautionary seizure measures on the establishment, and signing a travel ban order on the person in charge of the facility. The procedures also include referring the non-compliant establishment that employs (50) workers or more to the Public Prosecution in the event of a repeat The violation, or establishments owned by the same employer, when the total number of workers whose wages have not been paid reaches (50) or more. The Public Prosecution and the competent authorities are also notified to conduct legal procedures if the number of workers exceeds 50 and the matter is repeated within two consecutive months, or if there is a risk related to the stability and regularity of the labor market, regardless of the size of the establishment.