UAE tightening its remuneration rules


The government’s new labour law, which was announced in July, came into force in October.

Abu Dhabi: The UAE is strengthening its labour remuneration rules to curb exploitation of employees by companies and also to ensure that salary is paid on time.

A business entity employing more than 100 staff will have to face action if the salary is delayed by 10 days. If the salary is delayed by more than 16 days, the company’s license will not be renewed.

Additionally, if a company fails to pay salary for over a month, tough action will be initiated against it. If the salary is delayed by two months, the company will be slapped a fine of 5,000 dirhams per staff. A maximum penalty of 50,000 dirhams will be imposed on a company, according to the new law.

The government’s new labour law, which was announced in July, came into force in October.

There is also a provision to annul the licence and the bank account of the company in case of continuous violation of the law.

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