Unified UAE Legislation Database

FAQ: Employee's employer stops paying salary for several months; employer cites 'cash flow issues.' What shall a worker do in case of unpaid / delayed salaries?

Status

In force

Issuing Authority

Effective date

XX.XX.XXXX

Official Link

https://

Answer:

    If an employer stops paying salary or consistently delays payments, the employee has formal legal recourse through MoHRE. "Cash flow issues" cited by the employer do not exempt them from their legal obligations. UAE law provides both a complaint mechanism and financial penalties against non-compliant employers.

     

    LEGAL BASIS

    Definition of delayed salary: A salary is considered delayed if it has not been paid within 15 days of the due date.

     

    EMPLOYER LIABILITY

    • MoHRE can issue binding decisions for salary claims up to AED 50,000

    • Employers found in violation face fines of up to AED 1,000,000

    • If the complaint is confirmed, the case is escalated to the Labour Inspection Department, which conducts a physical visit to the establishment

    ELIGIBILITY CONDITIONS

    • The employee must be registered in MoHRE's database

    • The employee must have a valid...