The Ministry of Human Resources and Emiratization (MoHRE) has issued a new penalty for employers who don’t pay employee salaries on time.
“MoHRE calls establishments to pay salaries through the Wages Protection System, in light of raising the insurance cost from AED120 to AED250 for violating establishments with 30 days insurance coverage,” the ministry tweeted on Monday, April 12.
It reminded employers to pay their employees through the wages protection only. If the employer fails to do so, they will have to shell out more than double the insurance policy of an employee.
The new directive is in line with the ministry’s effort to empower the UAE labor force.
Additionally, upon recruiting a new employee, the employer has the option to either submit AED3,000 as a bank guarantee on behalf of the employee, as per the rules and regulations of the bank guarantee system or insure them under the new insurance policy, which costs AED120 for two years.