UAE Steps Up Action Against Delayed Salary Payments with Stricter Penalties Under Revamped Wage Protection System

The UAE has introduced a stricter enforcement framework to tackle delayed salary payments, with the Ministry of Human Resources and Emiratisation (MoHRE) implementing a series of escalating measures against employers who fail to pay workers on time under the Wage Protection System (WPS).

The measures are set out in Ministerial Resolution No. 340 of 2026 concerning the Wage Protection System and are aimed at strengthening employee protections while ensuring greater compliance among private-sector establishments.

Under the new framework, enforcement begins immediately once a salary payment delay is detected. On the first day of non-compliance, the establishment is placed under electronic monitoring by the ministry. If wages remain unpaid, automated notifications and warnings are issued on the second day, reminding employers of their obligation to settle outstanding salaries.

The penalties become more severe if the delay continues. By the fifth day, MoHRE suspends the issuance of new work permits for the violating establishment and formally notifies the owner of the reason for the suspension while urging prompt payment.

If wages remain unpaid by the eleventh day, financial penalties are imposed. Companies that repeatedly violate the wage payment rules within a six-month period may also be downgraded to the Third Category under the ministry's classification system, exposing them to additional regulatory consequences.

Further action follows on the sixteenth day. For establishments employing 25 or more workers, the ministry automatically registers official labour disputes and suspends all work permit transactions until the violation is resolved.

Where delays extend beyond 21 days, more stringent legal measures come into effect. These may include the issuance of an executive instrument against the establishment, precautionary attachment procedures and travel bans on the individuals responsible for the company. In more serious cases, particularly where the establishment employs more than 50 workers, the matter may be referred to the Public Prosecutor for further action.

The phased enforcement mechanism reflects the UAE's continued focus on protecting workers' rights and ensuring timely wage payments. By combining automated monitoring with progressively tougher administrative and legal penalties, the updated regulations seek to deter violations and reinforce compliance across the private sector.

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