UAE MoHRE Sets June 15 Deadline for Private Sector Salary Payments

The UAE Ministry of Human Resources and Emiratisation (MoHRE) has implemented a new mandate requiring private sector employers to settle all outstanding worker wages before June 15, 2024. The directive applies to all establishments registered with the ministry and aims to ensure full compliance with the Wage Protection System (WPS). Enforcement and Deadlines The June 15 deadline serves as a critical cutoff for companies to regularize their payroll records. Under current UAE labor laws, the WPS tracks all salary payments to ensure employees receive their agreed-upon compensation on time. Failure to adhere to these timelines can result in administrative penalties, including the suspension of new work permits and judicial liquidations of bank guarantees for non-compliant firms. Establishments are required to pay salaries on the due date through the WPS, a digital platform that links private sector entities with the Central Bank of the UAE. If a salary is not paid within 15 days of the due date, the company is officially considered in default, unless a shorter period is specified in the employment contract. Penalties for Non-Compliance Companies that fail to meet the June 15…