UAE companies faced fines for 33,000 instances of salary non-payment in 2023

UAE companies faced fines for 33,000 instances of salary non-payment in 2023

In 2023, authorities in the UAE identified 33,000 instances where companies failed to pay employee salaries using the Wage Protection System (WPS). The Ministry of Human Resources and Emiratisation (MoHRE) took action against these companies, imposing administrative penalties without specifying the exact nature or amount of fines.

The penalties for non-compliance with the WPS, a mandatory electronic salary transfer system for all employers registered with the MoHRE, can include the suspension of work permit issuance and financial fines. Furthermore, the ministry referred 509 companies to the Public Prosecution for operating without the necessary licenses, while 55 cases involved companies recruiting workers without proper authorization, resulting in the closure of five social media accounts engaged in unlicensed recruitment activities.

Additionally, the MoHRE imposed administrative penalties in over 1,200 cases involving the submission of false documents or data to obtain services, as well as 76 cases of worker accommodations failing to meet established standards. Overall, the ministry recorded 75,000 violations during 430,000 inspection visits conducted throughout the year. These violations encompassed various areas, including non-compliance with Emiratisation decisions, fake Emiratisation practices, violations of the Midday Break regulations prohibiting outdoor work during extreme heat, failure to report work-related incidents, and unlawful transfer of recruitment expenses to workers.

The Inspection Sector at MoHRE operates according to ethical and legal labor inspection standards, ensuring transparency and confidentiality while conducting inspections responsibly and respecting the integrity of employers and employees alike.