Which Employees and Establishments Are Exempt from the UAE's Wage Protection System Requirements?

The UAE has introduced updated rules governing the Wage Protection System (WPS), providing greater clarity on the categories of employees and establishments that are exempt from the salary monitoring framework. The provisions are contained in Ministerial Resolution No. 0340 of 2026 Concerning the Wage Protection System, which specifies circumstances in which employers are not required to process salary payments through the WPS.

One of the key exemptions relates to employees who are on approved unpaid leave. Under the resolution, a worker on unpaid leave is excluded from the Wage Protection System during the period of the approved leave. However, employers are required to notify the Ministry of Human Resources and Emiratisation (MOHRE) and submit the relevant supporting documents in accordance with the prescribed procedures. Failure to notify the ministry may result in the employee continuing to appear as unpaid under the system.

The resolution also exempts workers involved in wage-related legal disputes. Employees whose wage claims have been referred to the competent court, or in respect of whom an executive instrument has been issued, are not covered by the WPS for the duration of the dispute or enforcement process. This provision recognises that salary issues in such cases are subject to judicial proceedings rather than routine payroll monitoring.

Another category includes workers against whom an absconding report has been filed. Since such employees are no longer actively reporting to work and their employment status is under review, they are excluded from the system's salary payment requirements.

Employees whose liberty has been restricted pursuant to a court order, judgment, or other lawful authority are also exempt. In such situations, employers must notify MOHRE and provide supporting documentation confirming the worker's status before the exemption can be applied.

The resolution further excludes seafarers working on ships, provided that the establishment submits a request seeking the exemption. Similarly, foreign workers employed by overseas establishments or their branches operating in the UAE may be excluded when their salaries are paid outside the country, subject to a request from the employer.

Workers holding mission work permits for periods not exceeding three months are also outside the scope of the Wage Protection System. The exemption reflects the temporary nature of such employment arrangements.

In addition to employee-specific exemptions, the resolution identifies certain sectors and entities that are not subject to the Wage Protection System. These include fishing boats owned by individual UAE citizens and public taxis owned by individual citizens. Banks and financial institutions are likewise exempt from the WPS requirements, as are places of worship.

The updated framework aims to ensure that the Wage Protection System remains focused on monitoring salary compliance for the categories of workers for whom it was designed, while providing clear guidance on situations where alternative legal, administrative, or sector-specific arrangements apply. Employers relying on any of the exemptions should ensure that all notification and documentation requirements are fulfilled to avoid potential compliance issues with MoHRE.

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