Ministerial Resolution No. 598 of 2022 Concerning the Wages Protection System

§Preamble

MINISTERIAL RESOLUTION NO.(598) OF 2022 CONCERNING THE WAGES

PROTECTION SYSTEM

The Minister of Human Resources & Emiratisation Having perused:

▪ Federal Law No.(1) of 1972 on the competencies of the Ministries and Powers of the Ministers and amendments thereof,

▪ Federal Decree-Law No. (33) of 2021 concerning Regulation of Labor Relations and its Executive Regulations and its executive regulations issued pursuant to Cabinet Resolution No. (1) of 2022

▪ Cabinet Resolution No. (21) of 2020 concerning service fees and administrative fines at the Ministry of Human Resources and Emiratisation

▪ Ministerial Resolution No. (43) of 2022 concerning the Wages Protection System

▪ Ministerial Resolution No. (346) of 2022 concerning the amendment of certain provisions of Ministerial Resolution No. (43) of 2022 concerning the Wages Protection System

▪ Ministerial Resolution No. (209) of 2022 concerning the classification of establishments under the third category

▪ In pursuance of public interest

Has Resolved:

§Article 1

1. In accordance with Article 16 of the Executive Regulations of the Federal Decree-Law No. 33 of 2021 referred to above, all establishments registered with the Ministry are required to pay their employees’ wages on the due date. Depending on the system in place, this could be accomplished through the Wages Protection System, or through any other system approved by the Ministry. Employees shall receive their wages on the first day of the month following the registered payday specified in the Employment Contract. A wage shall be paid at least once per month, if no such date is specified therein.

This is not an official Translation

2. Employers who fail to pay wages to their employees within 15 days of the due date will be considered late, unless the Employment Contract provides otherwise.

3. Establishments must provide and submit all documentation required to prove the payment of wages.

§Article 2 — *

Establishments in default of paying their employees' wages will be subject to the following actions:

Deadline Targeted Action

Establishments

• Electronic monitoring will be

1. By the due date

performed on establishments to ensure compliance with the All establishments payment of wages.

• Reminders and notifications

2. In the third and will be sent to defaulting tenth days following

establishments in regards to the due date the payment of wages.

• Issuance of new work permits

3. By the Seventeenth All establishments for the establishment is day after the due suspended. A notification date explaining the reasons for the suspension will be sent to the employer.

• Defaulting establishments will Establishment be listed in the Electronic employing more than 50 Monitoring and Inspection employees System and inspections will be scheduled. An inspector will conduct inspections and issue warnings as necessary

• In addition to notifying the

This is not an official Translation

4. 45 days after the Establishment public prosecutor, the due date employing more than 50 establishment details will be

employees forwarded to the competent

authorities at the federal and local levels in order to pursue legal action as appropriate. The concerned department within the Ministry will follow up on these actions.

5. In the event the ▪ The following 1. All establishments against establishment procedures shall be which labour complaints repeats the violation taken: related to wages have been within six months

▪ Imposing an registered and referred to the administrative fine in judiciary, or regarding which accordance with the an executory deed has been aforementioned issued by the Ministry Cabinet Decision No. concerning those complaints. 21 of 2022. 2. All establishments against

▪ Changing the which salary reports have establishment's been registered for their category to the Third failure to pay due wages. Category in accordance with the aforementioned Ministerial Decision No. (209) of 2022.

* The article is amended in accordance with Ministerial Decision No. (0524) of 2025 Concerning the Amendment of Certain Provisions of Ministerial Decision No. 598 of 2022 Concerning the Wages Protection System

This is not an official Translation

§Article 3

This is without prejudice to the right of all employees to receive their agreed wages:

1. The establishment is considered compliant with wage payment requirements if more than 80 percent of the total wages of eligible employees are transferred according to their type of employment.

2. If a legal deduction has been made, the Employee is deemed to be a recipient of wage if 80 percent or more of the registered wage has been received, provided that evidence of such deduction is provided upon request.

§Article 4

An Employer who grants a leave without pay to an employee must notify the Ministry in accordance with the appropriate channels and procedures, stating the duration of the leave.

§Article 5

Wages Protection System (WPS) compliance requirements are not applicable to the following categories of employees:

1. Employees with wage-related labor complaints referred to the judiciary

2. Reported absconding employees

3. New employees, within thirty (30) days of the due date

4. Employees who receive unpaid leave during their leave period shall be exempt from this requirement, provided that supporting documentation is submitted to the Ministry.

5. Sailors working on board ships. Employers are responsible for submitting an application to the Ministry.

6. Foreign employees receiving wages outside of the country while working in foreign establishments or branches within the country, provided that the employee's consent has been obtained and that the employer has submitted an application to the Ministry.

§Article 6

The following establishments are excluded from the Wage Protection System (WPS) requirements:

This is not an official Translation

1. Fishing boats owned by nationals

2. Public taxis owned by nationals

3. Banks

4. Houses of worship (religious institutions)

§Article 7

A guide containing the procedures for implementing the provisions of this resolution shall be issued by the Undersecretary for Human Resources Affairs.

§Article 8

Ministerial Resolutions No.(43) and (346) of 2022 referred to are hereby repealed , in addition to any provisions inconsistent with those contained in this resolution.

§Article 9

This resolution shall be published in the Official Gazette and shall come into force from the date of its issuance.

Dr. Abdul Rahman Abdul Manan Al Awar Minister of Human Resources and Emiratisation Signature and seal appear

Issued by us on: 25th of November 2022

This is not an official Translation