• Ministerial Decree No. 739/2016 Concerning the Protection of Wages (‘MD 739') was recently introduced by the UAE Federal Ministry of Human Resources and Emiratisation (‘MOHRE') (formerly the Ministry of Labour).

• Ministerial Decree No. 739/2016 reinforces the existing requirement for employers registered with the MOHRE to subscribe to and pay the wages of their employees through the Wages Protection System (‘WPS'). It importantly also introduces new penalties against employers who fail to pay their employees' wages on time or who refuse to pay their employees' wages at all. Such penalties depend on the size of the employer and further include (among other penalties):

i. blocking the employer's ability to procure work permits;

ii. reducing the employer's classification; and

iii. fines.

Background