With the UAE's new salary protection rules taking effect on June 1, private sector workers have a strengthened set of rights if wages do not arrive on time, according to experts.
Under regulations recently introduced by the Ministry of Human Resources and Emiratisation (MoHRE), private sector employers must pay workers by the first of each month, or face automatic penalties, permit suspensions and fines.
The new rules will end a 15-day grace period that had allowed private-sector companies to effectively pay wages late without penalty. Previously, salaries were only considered late if they were not paid within the first 15 days after the due date. Now, the due date and payment deadline are the same.
Companies are considered compliant when 85 per cent of total wages are paid on schedule. For employees, The National asked the experts what you should do if your salary does not arrive on time.
Stay calm, but speak up early
The first step, HR professionals agree, is not to panic. "My advice would be to remain calm firstly, have a conversation as banking cut-offs and payroll transitions do happen sometimes,” said Nicki Wilson, managing director of Genie Recruitment. “Employees should first speak with HR or finance and ask for clarity on an expected payment date if there is a delay.”
A brief delay is not always a red flag. There are often explanations on both sides – including processing times at the employee's own bank – that a quick conversation can resolve.
“At the same time, employees should understand their rights, ask questions early and avoid allowing repeated delays to become 'normal'," Ms Wilson added.
If delays continue with no reason given, however, then employees can escalate the issue by reaching out to the relevant authority to make a formal complaint.
Know who to complain to
Where employees can direct formal complaints depends on which licensing body their employer falls under.
The ruling applies to all private sector companies in the UAE, with exceptions for businesses licensed under the Dubai International Financial Centre, Abu Dhabi Global Market and public sector entities.
It is imperative for employees to understand which governing or licensing body their company sits under “in order to ensure they make a complaint to the right body”, said Sarah Brooks, founder of Fikra HR.
For employees at MoHRE-licensed companies operating on the Wages Protection System (WPS), enforcement is largely automatic. "If there are delays, for those licensed under MoHRE with WPS there will, according to the resolution, be automatic reminders building to penalties, fines and limiting actions directly from MoHRE to the company and their company 'file'," Ms Brooks explained.
The picture is less clear-cut for those in freezones, she added. "Where there is no WPS type system, it is the requirement of the company to be self-governing in this regard, though the freezone authority should oversee and support the employee in case of any complaints.”
While the government already has complaint mechanisms in place, the new framework adds stronger monitoring and meaningful reinforcement for workers, said Ms Wilson.
When does the new cycle begin?
The first salary cycle covered by the new ruling is June's wages. "As the ruling is for June salary and for it to be paid on or before 1st July, there is still time for employers to ensure that this is met," said Ms Brooks. That said, workers should familiarise themselves with their rights and escalation routes now, not after a problem arises.
While the new rules give employees a stronger hand, they are equally designed to change how companies manage payroll. Ms Wilson said: "The companies who will handle this best are the ones planning ahead." This includes businesses forecasting cash flow earlier, building salary reserves where possible, overhauling WPS compliance processes and avoiding leaving payroll organisation until the final week of the month, she advised.
Ms Brooks recommends employers target an earlier pay date to absorb any unexpected delays. "My recommendation would be for them to aim to pay between 26th to 29th of the month, in order for it to avoid weekends, and give plenty of time for bank processes to be cleared and any errors to be resolved."
Transparency with staff matters just as much as the mechanics, added Ms Brooks. "They also need to communicate with their teams, not only about the changes from the legal side but also internal process changes that will facilitate their salary being paid on time.”
For Ms Wilson, the stakes go beyond regulatory compliance. "Cash flow is king, but salary confidence is culture," she said.
