What is WPS and how does this affect my business?

All businesses that have registered with the Ministry are expected to pay their employees' wages on time in compliance with UAE laws and regulations. This could be done through the Wages Protection System or any other system authorized by the Ministry, depending on the system in existence.

‍

On the first of the month after the registered payday stated in the employment contract, employees must receive their pay. If no specific day is stated, a wage must be paid at at least once a month.

‍

Unless the Employment Contract specifies otherwise, employers that fail to pay employees' wages within 15 days of the due date will be deemed to have paid so late. Establishments are obligated to furnish and submit all necessary evidence to support the payment of wages.

‍

The ministry will take the following sanctions against any establishment that fails to pay its employees on time:

‍

On the 3rd and 10th days after due date

• Reminders will be sent to every establishment, and notices about the failure to pay salaries will be delivered to defaulting establishments.

‍

On the 17th day after the deadline

• All establishments will have their ability to issue new work permits suspended, and the employer will be notified and given an explanation.
• Inspections will be scheduled, conducted by an inspector, and warnings will be given if needed. All defaulting businesses with more than 50 employees will be listed in the Electronic Monitoring and Inspection System.

‍

45th day after the due date

• In the event that a business has more than 50 workers and reached this point.  The ministry will inform the public prosecutor, and information about the establishment will be sent to the appropriate federal and municipal authorities so that they can take proper legal action and the Ministry's responsible department will monitor these developments.

‍

Violation is repeated within 6 months

• The business will be charged a fine and placed in establishment category 3