UAE Companies Fined for 33,000 Cases of Unpaid Salaries in 2023

Authorities in the UAE discovered 33,000 instances in 2023 where companies failed to pay salaries to employees, violating the Wage Protection System (WPS). The Ministry of Human Resources and Emiratisation (MoHRE) imposed “administrative penalties” on these companies, although the specific penalties or fine amounts were not disclosed. The WPS is an electronic salary transfer system that mandates all MoHRE-registered employers to pay their employees through approved financial institutions. Penalties for non-compliance include the suspension of work permit issuance and fines.

In addition to the salary non-payment cases, the MoHRE took action against various other violations. These included referring 509 companies to the Public Prosecution for providing unlicensed services, detecting 55 cases of companies recruiting workers without a license, and shutting down five social media accounts for unauthorized recruitment activities. The Ministry also imposed administrative penalties in over 1,200 cases involving the submission of false documents or data to obtain services, and in 76 cases where worker accommodations did not comply with standards.

Overall, the MoHRE recorded 75,000 violations during 430,000 inspection visits conducted in 2023. These violations included 1,077 cases of companies violating Emiratisation decisions and policies, 185 cases of non-compliance with the Midday Break regulations, and 30 cases where firms failed to report work injuries, occupational diseases, or the death of a worker. The Ministry also received approximately 1,500 complaints through official channels.

To raise awareness, the MoHRE conducted awareness campaigns among more than 2 million workers and over 9,000 employers. The Ministry commended the majority of private-sector companies for their commitment to labour market legislation, emphasizing the importance of these laws in stabilizing work relations and increasing productivity. The Inspection Sector at MoHRE operates under specific ethical and legal standards, ensuring transparency and confidentiality in its operations.

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