UAE companies Penalized for 33,000 Unpaid Salary Cases in 2023

The UAE authorities identified around 33,000 instances in 2023 wherein employers neglected to remunerate their staff via the Wage Protection System (WPS).

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Administrative penalties were levied against these enterprises by the Ministry of Human Resources and Emiratisation (MoHRE), although the precise nature of these sanctions remained undisclosed.

Violations of the WPS, an electronic salary transfer system that is obligatory for all employers enrolled with the MoHRE, may lead to disciplinary action including sanctions and the suspension of work permit issuance.

Moreover, the MoHRE referred 509 companies to the Public Prosecution for providing unlicensed services, while 55 cases of companies recruiting workers without a license were also identified. In addition, the ministry shut down five social media accounts for unauthorized recruitment activities.

In addition, 76 instances of worker accommodations not meeting regulations and nearly 1,200 incidents of providing the ministry with fraudulent papers or data resulted in administrative fines.

The government conducted 430,000 inspection visits last year and found 75,000 infractions. One thousand seventy-seven businesses were found to have engaged in fraudulent Emiratization activities, which was one of the many infractions. In addition, 30 businesses did not notify the ministry of occurrences involving their employees, and 185 businesses did not comply with the Midday Break laws. Companies also illegally passed on recruitment costs to employees in three separate instances.

The MoHRE received around 1,500 complaints through official channels and conducted awareness campaigns reaching over 2 million workers and 9,000 employers. The ministry commended the majority of private-sector companies for their commitment to labour market legislation, recognizing the importance of these laws in stabilizing work relations and enhancing productivity. The Inspection Sector at MoHRE operates under specific ethical and legal standards, including notifying employers of inspection dates, maintaining integrity and confidentiality, and respecting company confidentiality.

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