{"id":10488,"date":"2023-10-16T05:33:02","date_gmt":"2023-10-16T01:33:02","guid":{"rendered":"https:\/\/connectresources.ae\/?p=10488"},"modified":"2025-06-05T11:40:17","modified_gmt":"2025-06-05T07:40:17","slug":"uae-labour-laws-the-new-penalties-for-late-payment-of-salaries","status":"publish","type":"post","link":"https:\/\/connectresources.ae\/uae-labour-laws-the-new-penalties-for-late-payment-of-salaries\/","title":{"rendered":"UAE Labour Laws: The new penalties for late payment of salaries"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_76 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #c1121f;color:#c1121f\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #c1121f;color:#c1121f\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/connectresources.ae\/uae-labour-laws-the-new-penalties-for-late-payment-of-salaries\/#1_What_basic_information_should_you_know_about_the_payment_of_salaries_in_the_UAE\" >1. What basic information should you know about the payment of salaries in the UAE?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/connectresources.ae\/uae-labour-laws-the-new-penalties-for-late-payment-of-salaries\/#2_What_is_the_Wage_Protection_System_WPS_and_why_is_it_important_in_the_UAE\" >2. What is the Wage Protection System (WPS) and why is it important in the UAE?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/connectresources.ae\/uae-labour-laws-the-new-penalties-for-late-payment-of-salaries\/#3_How_should_companies_pay_their_employees_salaries_in_the_UAE\" >3. How should companies pay their employees\u2019 salaries in the UAE?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/connectresources.ae\/uae-labour-laws-the-new-penalties-for-late-payment-of-salaries\/#4_What_are_the_new_penalties_for_late_payment_of_employees_salaries\" >4. What are the new penalties for late payment of employees\u2019 salaries?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/connectresources.ae\/uae-labour-laws-the-new-penalties-for-late-payment-of-salaries\/#5_What_are_the_fines_that_companies_can_face_for_flouting_WPS_rules_and_regulations\" >5. What are the fines that companies can face for flouting WPS rules and regulations?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/connectresources.ae\/uae-labour-laws-the-new-penalties-for-late-payment-of-salaries\/#6_How_can_UAE_companies_pay_their_employees_on_time_to_avoid_penalties\" >6. How can UAE companies pay their employees on time to avoid penalties?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/connectresources.ae\/uae-labour-laws-the-new-penalties-for-late-payment-of-salaries\/#7_How_can_Connect_Resources_help_you_stay_compliant_with_the_law_and_avoid_the_new_penalties\" >7. How can Connect Resources help you stay compliant with the law and avoid the new penalties?<\/a><\/li><\/ul><\/nav><\/div>\n<p><span style=\"font-weight: 400;\">As the labour law in the UAE gets updates, all companies, employers, and workers must be aware of the changes. Otherwise, any of them could unwarily commit mistakes and get penalties for it, which can cost huge fines. And there are new <\/span><b>penalties for late payment of salaries<\/b><span style=\"font-weight: 400;\"> for companies that do not pay wages on time.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">In this article, you will learn everything you need to know about this new kind of penalty for UAE companies. Therefore, if you are a company owner or employer, you should read this article to stay up-to-date and avoid penalties. Plus, you will be able to learn more interesting facts about <a href=\"https:\/\/connectresources.ae\/manpower-in-uae\/\" data-wpil-monitor-id=\"870\">labour laws in the UAE<\/a>. Let\u2019s observe:<\/span><\/p>\n<ol>\n<li><span style=\"font-weight: 400;\"> What basic information should you know about the payment of salaries in the UAE?<\/span><\/li>\n<li><span style=\"font-weight: 400;\"> What is the Wage Protection System (WPS) and why is it important in the UAE?<\/span><\/li>\n<li><span style=\"font-weight: 400;\"> How should companies pay their employees\u2019 salaries in the UAE?<\/span><\/li>\n<li><span style=\"font-weight: 400;\"> What are the new penalties for late payment of employees\u2019 salaries?<\/span><\/li>\n<li><span style=\"font-weight: 400;\"> What are the fines that companies can face for flouting WPS rules and regulations?<\/span><\/li>\n<li><span style=\"font-weight: 400;\"> How can UAE companies pay their employees on time to avoid penalties?<\/span><\/li>\n<li><span style=\"font-weight: 400;\"> How can Connect Resources help you stay compliant with the law and avoid the new penalties?<\/span><\/li>\n<\/ol>\n<p><a href=\"https:\/\/connectresources.ae\/contact\/?utm_source=contactus&amp;utm_medium=tracking&amp;utm_campaign=calltoaction&amp;utm_id=website\"><img decoding=\"async\" class=\"alignnone wp-image-27355 size-full\" src=\"https:\/\/connectresources.ae\/wp-content\/uploads\/2022\/11\/Connect-resources-call-to-action.png\" alt=\"\" width=\"6912\" height=\"2304\" srcset=\"https:\/\/connectresources.ae\/wp-content\/uploads\/2022\/11\/Connect-resources-call-to-action.png 6912w, https:\/\/connectresources.ae\/wp-content\/uploads\/2022\/11\/Connect-resources-call-to-action-300x100.png 300w, https:\/\/connectresources.ae\/wp-content\/uploads\/2022\/11\/Connect-resources-call-to-action-1024x341.png 1024w\" sizes=\"(max-width: 6912px) 100vw, 6912px\" \/><\/a><\/p>\n<h2><span class=\"ez-toc-section\" id=\"1_What_basic_information_should_you_know_about_the_payment_of_salaries_in_the_UAE\"><\/span><span style=\"font-weight: 400;\">1. What basic information should you know about the payment of salaries in the UAE?<\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><img decoding=\"async\" class=\"aligncenter\" src=\"https:\/\/www.worklawyers.com\/assets\/media\/employee-calculating-minimum-wage.png\" \/><\/p>\n<p><span style=\"font-weight: 400;\">Before knowing about the penalties for the payment of <\/span><b>late salary in the UAE<\/b><span style=\"font-weight: 400;\">, you must know the basic concepts. In this country, employers must pay their workers their salaries monthly on due dates if they work for an annual\/monthly wage. And the payment of their salaries must not be later than 10 days after the end of every salary period.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">In case the contract does not mention those periods, the employer has to pay the employee once every 14 days. And, of course, the payment must be in the national currency of the United Arab Emirates, which is AED. Other basic facts that you should are the minimum wage amount and basic and total salaries.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">As for the minimum wage, there is not an actual amount that the <\/span><a href=\"https:\/\/connectresources.ae\/what-you-must-know-about-the-uaes-new-labor-law\/\"><span style=\"font-weight: 400;\">UAE labour laws<\/span><\/a><span style=\"font-weight: 400;\"> stipulate in this case. Nonetheless, it is evident that every employee must receive a salary that covers their basic needs successfully. And that is something that the UAE <a href=\"https:\/\/connectresources.ae\/oman-labour-law\/\" data-wpil-monitor-id=\"1098\">labour laws broadly mention and all employers<\/a> must comply with it.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Article 27 of <\/span><span style=\"font-weight: 400;\">the Labour Law of the UAE<\/span><span style=\"font-weight: 400;\"> clearly states that the minimum wage and cost of living index vary. And they can be determined either in general or for a specific area or profession. This is by virtue of a decree and consent of the Cabinet. As for the basic salary, the law does not specify any particular percentage, so it is up to the company to negotiate it with the employee.<\/span><\/p>\n<h2><span class=\"ez-toc-section\" id=\"2_What_is_the_Wage_Protection_System_WPS_and_why_is_it_important_in_the_UAE\"><\/span><span style=\"font-weight: 400;\">2. What is the Wage Protection System (WPS) and why is it important in the UAE?<\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span style=\"font-weight: 400;\">In 2019, the Central Bank of the UAE and the MOHRE (Ministry of Human Resources and <a class=\"wpil_keyword_link\" title=\"Emiratisation\" href=\"https:\/\/connectresources.ae\/emiratisation\/\" data-wpil-keyword-link=\"linked\" data-wpil-monitor-id=\"362\">Emiratisation<\/a>) launched the WPS. And it is an efficient electronic salary transfer system that allows companies to pay their employees\u2019 wages through different banks. Plus, it can also allow them to pay said wages through other approved financial institutions and bureau de change.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Since it is important to avoid <\/span><b>penalties for late payment of salaries<\/b><span style=\"font-weight: 400;\">, the MOHRE provides companies with the necessary tools. For instance, private sector companies have access to a reliable database in order to create salary files for their workers. And, in order to distribute wages to employees, companies send those files to the respective banks or financial institutions.<\/span><\/p>\n<h3><span style=\"font-weight: 400;\">2.1. How does the WPS work?<\/span><\/h3>\n<p><span style=\"font-weight: 400;\">Firstly, the company must be from the private sector and be registered with the ministry to open a bank account. And then, the <a class=\"wpil_keyword_link\" title=\"WPS\" href=\"https:\/\/connectresources.ae\/e-services\/\" data-wpil-keyword-link=\"linked\" data-wpil-monitor-id=\"422\">WPS<\/a> provides the employer\u2019s bank with the necessary authorization to pay salaries to their employees. And lastly, the bank transfers the wages to the employees\u2019 respective bank accounts.<\/span><\/p>\n<h2><span class=\"ez-toc-section\" id=\"3_How_should_companies_pay_their_employees_salaries_in_the_UAE\"><\/span><span style=\"font-weight: 400;\">3. How should companies pay their employees\u2019 salaries in the UAE?<\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span style=\"font-weight: 400;\">Any private sector company that is registered with the MOHRE has to subscribe to WPS to <strong>process wage payments<\/strong>. As we mentioned before, this is a system that allows employers to transfer employees\u2019 salaries to their bank accounts effectively. As for the payment process, employers must make sure they follow these steps:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Open a bank account with an approved bank in case they do not have it already.<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Sign in to a WPS agreement with their chosen bank.<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Employers can issue salary transfer instructions to their selected bank.<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">The bank must notify the WPS in the UAE to send the employees\u2019 details, wages, and also salary transfer instructions. This is done through an electronic system to send this information to the UAE Central Bank.<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">The Central Bank forwards all that information to the MOHRE for cross-checking.<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">And lastly, the WPS authorizes the employer\u2019s bank to pay employees\u2019 wages, which then transfers the salary to the workers\u2019 bank accounts.<\/span><\/li>\n<\/ul>\n<h2><span class=\"ez-toc-section\" id=\"4_What_are_the_new_penalties_for_late_payment_of_employees_salaries\"><\/span><span style=\"font-weight: 400;\">4. What are the new penalties for late payment of employees\u2019 salaries?<\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><strong><img decoding=\"async\" class=\"aligncenter\" src=\"https:\/\/www.worklawyers.com\/assets\/media\/paydays-pay-periods-california-law-1600x900.png\" \/><\/strong><\/p>\n<p><span style=\"font-weight: 400;\">Recently, the MOHRE issued a new decree, which is about the new <\/span><b>penalties for late payment of salaries<\/b><span style=\"font-weight: 400;\">. In other words, companies must not fail to pay employees\u2019 wages on time if they want to avoid these penalties. Otherwise, these companies could face severe legal issues and huge fines that will not favor them at all.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">There are many consequences that can be applied in case employers fail to pay employees\u2019 wages on time. For example, they could include suspension of new <\/span><a href=\"https:\/\/connectresources.ae\/a-13-step-guide-to-getting-a-work-permit-in-dubai-uae\/\"><span style=\"font-weight: 400;\">work permits<\/span><\/a><span style=\"font-weight: 400;\">, a notice to the public prosecution, and fines as well. But before employers could face these penalties, they will be notified on the 3<\/span><span style=\"font-weight: 400;\">rd<\/span><span style=\"font-weight: 400;\"> and 10<\/span><span style=\"font-weight: 400;\">th<\/span><span style=\"font-weight: 400;\"> day after the due date for payment of wages.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">One case is when employers with more than 50 employees do not pay wages 17 days after the due dates. And, in that situation, they will be subject to field inspections from the MOHRE and warnings. But for smaller establishments, there will be suspension of work permits. And you must keep in mind that <\/span>penalties for late payment of salaries may escalate with further delay.<\/p>\n<p><span style=\"font-weight: 400;\">In the UAE, the new resolution seeks to implement better and stronger <\/span>penalties for late payment of salaries<span style=\"font-weight: 400;\">. Therefore, if an employer does not pay wages within 15 days from the due date, there will be consequences. However, it is possible to reconsider those penalties if the <\/span><a href=\"https:\/\/connectresources.ae\/everything-you-should-know-about-an-international-employment-contract\/\"><span style=\"font-weight: 400;\">employment contract<\/span><\/a><span style=\"font-weight: 400;\"> specifies other due dates.<\/span><\/p>\n<section class=\"l-section wpb_row us_custom_c9f14037 shoort_colr hide_on_default hide_on_laptops hide_on_tablets height_auto\">\n<div class=\"l-section-h i-cf\">\n<div class=\"g-cols vc_row via_flex valign_top type_default stacking_default\">\n<div class=\"vc_col-sm-12 wpb_column vc_column_container\">\n<div class=\"vc_column-inner\">\n<div class=\"wpb_wrapper\">\n<div class=\"g-cols wpb_row us_custom_adadfab6 via_flex valign_top type_default stacking_default\">\n<div class=\"vc_col-sm-2 wpb_column vc_column_container\">\n<div class=\"vc_column-inner\">\n<div class=\"wpb_wrapper\"><\/div>\n<\/div>\n<\/div>\n<div class=\"vc_col-sm-8 wpb_column vc_column_container shortcode_pr has_bg_color\">\n<div class=\"vc_column-inner us_custom_61df8e5b\">\n<div class=\"wpb_wrapper\">\n<div class=\"wpb_text_column us_custom_f05631e6 has_text_color\">\n<div class=\"wpb_wrapper\">\n<p style=\"margin: 0 0 0rem; text-align: center; font-size: 20px;\">Schedule a <strong><span style=\"color: #1b997a;\">Consultation Call<\/span><\/strong> with our expert<\/p>\n<p style=\"text-align: center; font-size: 14px;\">Let our experts help you find the Best Solution in Middle East<\/p>\n<\/div>\n<\/div>\n<div class=\"w-btn-wrapper align_center\"><a class=\"w-btn us-btn-style_5 us_custom_2fc2a597\" href=\"https:\/\/connectgroup2.pipedrive.com\/scheduler\/wODjrKiE\/meeting-with-liam-doherty\" target=\"_blank\" rel=\"noopener\"><span class=\"w-btn-label\">Schedule a call<\/span><\/a><\/div>\n<div class=\"wpb_text_column us_custom_f05631e6 has_text_color\">\n<div class=\"wpb_wrapper\">\n<p style=\"font-size: 20px;\">Get <strong>started today<\/strong><\/p>\n<\/div>\n<\/div>\n<div class=\"wpcf7 no-js\" id=\"wpcf7-f6391-o1\" lang=\"en-US\" dir=\"ltr\" data-wpcf7-id=\"6391\">\n<div class=\"screen-reader-response\"><p role=\"status\" aria-live=\"polite\" aria-atomic=\"true\"><\/p> <ul><\/ul><\/div>\n<form action=\"\/wp-json\/wp\/v2\/posts\/10488#wpcf7-f6391-o1\" method=\"post\" class=\"wpcf7-form init\" aria-label=\"Contact form\" novalidate=\"novalidate\" data-status=\"init\">\n<fieldset class=\"hidden-fields-container\"><input type=\"hidden\" name=\"_wpcf7\" value=\"6391\" \/><input type=\"hidden\" name=\"_wpcf7_version\" value=\"6.1.1\" \/><input type=\"hidden\" name=\"_wpcf7_locale\" value=\"en_US\" \/><input type=\"hidden\" name=\"_wpcf7_unit_tag\" value=\"wpcf7-f6391-o1\" \/><input type=\"hidden\" name=\"_wpcf7_container_post\" value=\"0\" \/><input type=\"hidden\" name=\"_wpcf7_posted_data_hash\" value=\"\" \/>\n<\/fieldset>\n<div class=\"col-lg-6 col-md-6 col-sm-6 col-xs-12\">\n\t<div 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class=\"wpcf7-form-control-wrap\" data-name=\"gclid\"><textarea cols=\"40\" rows=\"10\" maxlength=\"2000\" class=\"wpcf7-form-control wpcf7-textarea\" id=\"testgclid\" aria-invalid=\"false\" placeholder=\"No Tag\" name=\"gclid\"><\/textarea><\/span>\n\t<\/p>\n<\/div>\n<div style=\"display:none;\" class=\"gclid_tag\" id=\"transaction_hide\">\n\t<p><span class=\"wpcf7-form-control-wrap\" data-name=\"initial_url\"><textarea cols=\"40\" rows=\"10\" maxlength=\"2000\" class=\"wpcf7-form-control wpcf7-textarea\" id=\"initial_url\" aria-invalid=\"false\" placeholder=\"No URL\" name=\"initial_url\"><\/textarea><\/span>\n\t<\/p>\n<\/div>\n<div id=\"explore_platform5\" class=\"col-lg-12 col-md-12 col-sm-12 col-xs-12\">\n\t<div class=\"form-group\">\n\t\t<p><span class=\"wpcf7-form-control-wrap\" data-name=\"your-message\"><textarea cols=\"70\" rows=\"7\" maxlength=\"2000\" class=\"wpcf7-form-control wpcf7-textarea wpcf7-validates-as-required form-control\" aria-required=\"true\" aria-invalid=\"false\" placeholder=\"How can we assist you?\" name=\"your-message\"><\/textarea><\/span>\n\t\t<\/p>\n\t<\/div>\n<\/div>\n<div class=\"col-lg-12 col-md-12 col-sm-12 col-xs-12\">\n\t<div class=\"buttons-area\">\n\t\t<p><input class=\"wpcf7-form-control wpcf7-submit has-spinner btn n-btn-flat btn-mid btn-block\" type=\"submit\" value=\"Submit\" \/>\n\t\t<\/p>\n\t<\/div>\n<\/div><input type='hidden' class='wpcf7-pum' value='{\"closepopup\":false,\"closedelay\":0,\"openpopup\":false,\"openpopup_id\":0}' \/><div class=\"wpcf7-response-output\" aria-hidden=\"true\"><\/div>\n<\/form>\n<\/div><\/div>\n<\/div>\n<\/div>\n<div class=\"vc_col-sm-2 wpb_column vc_column_container\">\n<div class=\"vc_column-inner\">\n<div class=\"wpb_wrapper\"><\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/section>\n\n<h3><span style=\"font-weight: 400;\">4.1. What sanctions are applicable if employers fail to pay wages on time?<\/span><\/h3>\n<p><span style=\"font-weight: 400;\">Now, it is important to mention the exact sanctions that the <\/span>late salary payment law<span style=\"font-weight: 400;\"> states for those cases. This way, you will be aware of the consequences that could happen if an employer pays a <\/span><b>late salary in Dubai<\/b><span style=\"font-weight: 400;\">. Therefore, we shall take a look at this list of the sanctions for late payment of wages in the UAE:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\"><strong>3rd and 10th<\/strong><span style=\"font-weight: 400;\"><strong> day after the due date:<\/strong> In this first case, companies will start receiving official reminders to pay employees\u2019 wages.<\/span><\/li>\n<li style=\"font-weight: 400;\"><strong>17th<\/strong><span style=\"font-weight: 400;\"><strong> day after the due date:<\/strong> As for this case, there will be suspension of the issuance of new work permits. Besides, companies with more than 50 workers will be subject to warnings and inspections from the MOHRE.<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\"><strong>30 days after the due date:<\/strong> Legal measures will initiate against companies that employ from 50 to 499 employees. as for those with 500 or more employees, the ministry will classify them as high-risk establishments.<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\"><strong>60 days after the due date:<\/strong> At this stage, there is a suspension of the issuance of new work permits for the company. And this sanction is also applicable to other firms that are under the same owner of the breaching company.<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\"><strong>3 months after the due date:<\/strong> For this case, there will be suspension of requests for issuing\/renewing <\/span><span style=\"font-weight: 400;\">work<\/span> <span style=\"font-weight: 400;\">permits<\/span><span style=\"font-weight: 400;\">. Besides, the company can be referred to the public prosecution and fined. That is in case an inspection visit reveals the absence of a working relationship after six months of non-compliance.<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\"><strong>In case there is repeated non-compliance: <\/strong>If a company violates any of the laws more than one time, there will be more consequences. For example, it can be subject to inspections from the MOHRE, multiple fines, and a downgrade to a lesser category.<\/span><\/li>\n<\/ul>\n<h2><span class=\"ez-toc-section\" id=\"5_What_are_the_fines_that_companies_can_face_for_flouting_WPS_rules_and_regulations\"><\/span><span style=\"font-weight: 400;\">5. What are the fines that companies can face for flouting WPS rules and regulations?<\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span style=\"font-weight: 400;\">Besides <\/span><b>penalties for late payment of salaries<\/b><span style=\"font-weight: 400;\">, there are also fines for flouting the WPS regulations in the UAE. And in order to avoid them, you must be aware of them and make sure to stay compliant. In case there are actions that involve fraudulent use of the WPS, the following penalties can be applied:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">If the employer enters incorrect data in the system for evasion purposes, there will be an AED 5,000 fine for each worker. And in the case of multiple employees, there will be a maximum limit of AED 50,000.<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">In case the employer fails to pay wages on due dates through the WPS, the fine will be AED 1,000 per worker.<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Another case is when employers force employees to sign fake pay slips that show that they have received their salaries. In that case, there will be an AED 5,000 per employee.<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">And if there is a company that fails to sign up with the WPS can face other consequences. For instance, they could be blocked from all types of new work permits until employees\u2019 salaries are fully paid.<\/span><\/p>\n<p><a href=\"https:\/\/connectresources.ae\/contact\/?utm_source=contactus&amp;utm_medium=tracking&amp;utm_campaign=calltoaction&amp;utm_id=website\"><img decoding=\"async\" class=\"alignnone wp-image-27238 size-full\" src=\"https:\/\/connectresources.ae\/wp-content\/uploads\/2023\/03\/2.png\" alt=\"\" width=\"6912\" height=\"2304\" srcset=\"https:\/\/connectresources.ae\/wp-content\/uploads\/2023\/03\/2.png 6912w, https:\/\/connectresources.ae\/wp-content\/uploads\/2023\/03\/2-300x100.png 300w, https:\/\/connectresources.ae\/wp-content\/uploads\/2023\/03\/2-1024x341.png 1024w\" sizes=\"(max-width: 6912px) 100vw, 6912px\" \/><\/a><\/p>\n<h2><span class=\"ez-toc-section\" id=\"6_How_can_UAE_companies_pay_their_employees_on_time_to_avoid_penalties\"><\/span><span style=\"font-weight: 400;\">6. How can UAE companies pay their employees on time to avoid penalties?<\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span style=\"font-weight: 400;\">Paying employees\u2019 salaries is not only to avoid <\/span>penalties for late payment of salaries<span style=\"font-weight: 400;\"> but to stay compliant too. And the best way to do both things successfully is by getting an <\/span><a href=\"https:\/\/connectresources.ae\/the-benefits-of-an-automated-payroll-system-dubai-for-your-business\/\"><span style=\"font-weight: 400;\">automated payroll system<\/span><\/a><span style=\"font-weight: 400;\"> or getting payroll services. This way, companies will be able to pay wages on time and prevent human errors during the payment process.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">On the other hand, getting payroll outsourcing services from a specialized agency or an EOR is another excellent choice. Besides paying employees timely, it is also possible to get many benefits by <\/span><a href=\"https:\/\/connectresources.ae\/eor-employer-of-record-dubai\/\"><span style=\"font-weight: 400;\">hiring an EOR<\/span><\/a><span style=\"font-weight: 400;\"> or a payroll-related agency. For instance, companies can get ongoing HR management and support to stay compliant at all times and in every aspect.<\/span><\/p>\n<h2><span class=\"ez-toc-section\" id=\"7_How_can_Connect_Resources_help_you_stay_compliant_with_the_law_and_avoid_the_new_penalties\"><\/span><span style=\"font-weight: 400;\">7. How can Connect Resources help you stay compliant with the law and avoid the new penalties?<\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span style=\"font-weight: 400;\">Finding a legal assistant that helps you avoid <\/span><b>penalties for late payment <\/b>of salaries<span style=\"font-weight: 400;\"> is the most suggestible option. However, this is not about avoiding penalties and fines but staying in compliance with the UAE labour laws. And <\/span><a href=\"https:\/\/connectresources.ae\/about-us\/\"><span style=\"font-weight: 400;\">Connect Resources<\/span><\/a><span style=\"font-weight: 400;\"> can help you get the solutions you need to stay compliant and keep your employees happy too.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">You can request our efficient <\/span><a href=\"https:\/\/connectresources.ae\/payroll\/\"><span style=\"font-weight: 400;\">payroll outsourcing services<\/span><\/a><span style=\"font-weight: 400;\"> to make sure your employees get paid on time and in full. Besides, with our automated payroll system, there will be no mistakes or errors during any process. As a result, our solutions will cover your company\u2019s and your employees\u2019 needs without breaking any of the labour laws.<\/span><\/p>\n<p><img decoding=\"async\" class=\"size-full wp-image-10373 aligncenter\" src=\"https:\/\/connectresources.ae\/wp-content\/uploads\/2022\/03\/logo-connect-resources-color-1.png\" alt=\"\" width=\"1239\" height=\"387\" srcset=\"https:\/\/connectresources.ae\/wp-content\/uploads\/2022\/03\/logo-connect-resources-color-1.png 1239w, https:\/\/connectresources.ae\/wp-content\/uploads\/2022\/03\/logo-connect-resources-color-1-300x94.png 300w, https:\/\/connectresources.ae\/wp-content\/uploads\/2022\/03\/logo-connect-resources-color-1-1024x320.png 1024w\" sizes=\"(max-width: 1239px) 100vw, 1239px\" \/><\/p>\n<p><b>Would you like to <\/b><b>contact us <\/b><b>to obtain more information about the process of paying employees on time?<\/b><span style=\"font-weight: 400;\">\u00a0<\/span><span style=\"font-weight: 400;\">If your answer is yes and you have any questions, feel free to write us an email to<\/span><span style=\"font-weight: 400;\">\u00a0<\/span><a href=\"mailto:contact@connectresources.ae\"><b>contact@connectresources.ae<\/b><\/a>.<span style=\"font-weight: 400;\"> You will then talk to one of our representatives who will gladly answer all of your questions.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">In addition, if you desire to find the most suitable <\/span><span style=\"font-weight: 400;\">job opportunities<\/span><span style=\"font-weight: 400;\"> for you, make sure to visit <\/span><a href=\"http:\/\/thetalentpoint.com\" target=\"_blank\" rel=\"noopener\"><b>thetalentpoint.com<\/b><\/a><span style=\"font-weight: 400;\">. On this website, you will need to submit your CV or resume to search for your dream job effortlessly. Besides, you can also feel free to send an email at <\/span><a href=\"mailto:contact@thetalentpoint.com\"><b>contact@thetalentpoint.com<\/b><\/a><span style=\"font-weight: 400;\">, so we can receive your application and review it.<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>As the labour law in the UAE gets updates, all companies, employers, and workers must be aware of the changes. Otherwise, any of them could unwarily commit mistakes and get penalties for it, which can cost huge fines. And there are new penalties for late payment of salaries for companies that do not pay wages&#8230;<\/p>\n","protected":false},"author":66,"featured_media":42102,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[1000,1002],"tags":[],"table_tags":[],"class_list":["post-10488","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-payroll-outsourcing","category-hr-outsourcing"],"acf":[],"_links":{"self":[{"href":"https:\/\/connectresources.ae\/wp-json\/wp\/v2\/posts\/10488","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/connectresources.ae\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/connectresources.ae\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/connectresources.ae\/wp-json\/wp\/v2\/users\/66"}],"replies":[{"embeddable":true,"href":"https:\/\/connectresources.ae\/wp-json\/wp\/v2\/comments?post=10488"}],"version-history":[{"count":10,"href":"https:\/\/connectresources.ae\/wp-json\/wp\/v2\/posts\/10488\/revisions"}],"predecessor-version":[{"id":55572,"href":"https:\/\/connectresources.ae\/wp-json\/wp\/v2\/posts\/10488\/revisions\/55572"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/connectresources.ae\/wp-json\/wp\/v2\/media\/42102"}],"wp:attachment":[{"href":"https:\/\/connectresources.ae\/wp-json\/wp\/v2\/media?parent=10488"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/connectresources.ae\/wp-json\/wp\/v2\/categories?post=10488"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/connectresources.ae\/wp-json\/wp\/v2\/tags?post=10488"},{"taxonomy":"table_tags","embeddable":true,"href":"https:\/\/connectresources.ae\/wp-json\/wp\/v2\/table_tags?post=10488"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}