Decree in UAE Labour Law 2016

Decree in UAE Labour Law 2016


# Decree Number 739 of 2016 – Wage Protection

A labourer is a workman who drains his energy and time for the organisation where he is assigned to work for.  As he entrusts himself for the welfare and well-being of the company, he is deserved to receive an income equal to whatever job he does. The United Arab Emirates is a country with an elegant law for Labour, known as UAE Labor Law.

The Authorities and the Ministry are very much keen on ensuring Rights of Employers as well as Employees. In order to maintain that, the lawmakers do issue decrees, i.e., an official order every now and then when the labour scenario necessitates for it.

UAE Labor Law is confined law of many Articles. However, the law is perfect when it is associated with updated decrees.

One among the latest of such decree is the one released on 3rd of October 2016 named Decree 739 of 2016 regarding the wage payment protection i.e. to pay on time. It contains 4 significant Articles.

The Ministry of Human Resources and Emiratisation has implemented the newly launched decree aiming to safeguard the rights of the employees.

The decree enshrines the duty of the employers to credit the salary on the salary date or within a period of 10 days from the salary date. The decree mainly focuses on those companies which employ workers of 100 or more. The failure in complying with these duties shall enable the authorities to block such companies by denying any work permits or other official issuance from the 16th day of nonpayment. However, each different scenario shall be considered accordingly.

The Ministry hereby is empowered to hand over the matter to the Judiciary as well. It further has the power to stop such employers from any of his other companies also to block him from further proposed projects.

Furthermore, they shall be liable for the administrative fines as well starting from an amount of AED 5000 – AED 50,000/- . Also, there shall be ban for the violating companies which may last for 60 days. The decree basically applies to companies having 100 or more workers only. There is also a final warning that the Ministry is not going to do any kind of transactions to those who doesn’t register with the WPS system till date.

The decree showcases a helping hand for those employees who are struggled to get payment /salary on the due date. Thus any employee who finds his rights are being violated can step into the authorities’ desk and inform their grievances. If you find any difficulty in understanding the law …..Just ping us on our website and take the advantage of Live Chat.

Written By,

Adv. Kanmani Karanchery

Bin Eid Advocates and Legal Consultants

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