The UAE is about to introduce a new law that places further obligations on employers to pay workers’ wages on time.
The UAE Ministry of Human Resources & Emiratisation’s (MOHRE) Ministerial Decree No (739) of 2016 Concerning the Protection of Wages, which will become effective from October 2016, also sets out sanctions for violators.
The legislation is intended to offer enhanced protections to employees, and to seek to prevent exploitative practices. The decree will repeal Federal Ministerial Decree No 788 of 2009.
Rebecca Kelly, partner, and David McDonald, associate, at Morgan, Lewis & Bockius LLP, told Construction Week that the law will allow the MOHRE to effectively monitor the salary payments of construction professionals.
“The payment of salary is considered late if it has not been paid within 10 days of the due date registered in the Wage Protection System (WPS),” they explained… see more