Postponing employee salaries lowers employer valuation

The Ministry of Human Resources and Emiratization has warned employers and establishments employing 50 or more workers that workers’ wages and salaries are paid late according to the deadlines and procedures set out in Ministerial Resolution No. (43) of 2022 with relating to the wage protection system is one of the five most prominent violations leading to downgrading of employees. The companies registered with the ministry were classified as “high-risk companies”, noting that during their field visits over the past 10 months, the ministry’s inspectors monitored 2,973 violations of non-payment of wages.

The ministry stated that the list of five violations that drop the site’s classification as “high risk” also includes the occurrence of more than one work stoppage or collective dispute over the past 12 months, due to the violation by the facility of its legal or contractual obligations. , and it also includes the presence of labor complaints for non-compliance by the company with its obligations Legal or contractual, referred by the Ministry to the judicial authorities, provided that the percentage of these complaints represents 30% or more of the total number of employees registered at the facility, as well as the existence of expired work permits by more than 30% of the number of employees registered at the facility, and not renewed within the time frame specified in Cabinet Resolution No. 21 of 2020 regarding service charges and administrative fines at the Ministry of Human Resources and Emiratization, in addition to reports of more than 30% of employees absent from work.

And she confirmed that the high-risk status of the establishments under this classification will be lifted once their status is determined, and the availability of the five reasons or cases related to the criteria for determining high-risk establishments has disappeared, explain that it is mandatory to remove the high-risk status of the establishment against which work stoppages are filed (more than 30% of the total number of employees), regularization of the legal status and the lack of work stoppage reports during the last 12 months.

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