UAE WPS Update: No More Grace Period, Penalties are Automatic

This article describes the initial implementation and mechanism of the Wages Protection System (WPS) in the UAE, primarily based on the Ministerial Resolution No. 788 of 2009.

While the fundamental purpose and mechanism of WPS remain the same—it is still an electronic system to ensure timely payment of wages—the deadlines, consequences, and specific penalties have been significantly updated and made much stricter since 2009, especially under the new Federal Decree-Law No. 33 of 2021 (the UAE Labour Law) and subsequent Ministerial Resolutions.

Here is the updated status, focusing on the current rules for late payment and penalties:

💰 UAE Wages Protection System (WPS): Mandatory Compliance & Strict Penalties

#WPS #WageProtection #MoHRE

The Wages Protection System (WPS) remains the mandatory electronic salary transfer system in the UAE private sector, ensuring workers receive their agreed-upon wages on time. The Ministry of Human Resources and Emiratisation (MoHRE), in coordination with the Central Bank of the UAE (CBUAE), strictly enforces this system.

Key Current Requirements & Deadlines

Requirement	2009 Rule (Article)	Current (2025) Rule (MoHRE/WPS)
Transfer Deadline	Within two weeks of the due date.	Wages must be paid via WPS within a maximum of 15 days from the due date specified in the employment contract.
Defining Late Payment	Delaying payment for more than one month of the due date.	Payment is considered delayed if not transferred within 15 days of the due date.
Compliance Exemption	Exemption periods based on the number of workers (100+, 15-99, etc.).	No general exemptions. WPS coverage is mandatory for all private sector companies registered with MoHRE, regardless of size.

🛑 Current Consequences and Penalties for WPS Violations

The consequences for non-compliance are much faster and more severe today than the 2009 penalty of simply denying new work permits. Penalties are now automated and escalate rapidly:

Delay/Violation Type	Current MoHRE Action/Penalty
17 Days Delay	Automatic Suspension of New Work Permits: The company is immediately blocked from hiring new employees.
30 Days Delay (or More)	Legal Escalation and Further Bans: * The Public Prosecution may be notified for further legal action (for companies with 50+ workers). * The ban on new work permits may extend to all companies owned by the same partners (for repeat violators).
60 Days Delay (Worker Right)	If a worker's salary is delayed for 60 days or more, the employee has the legal right to terminate their contract immediately and join a new employer without being penalized or banned, and is entitled to full end-of-service dues and compensation.
Failing to Register in WPS	Companies not registered in WPS may face fines starting from AED 5,000 per worker.
Fines for Non-Payment/Delay	Administrative fines start from AED 1,000 per employee (up to AED 20,000 maximum fine).
Repeat Violators	Companies that repeatedly violate WPS rules may face downgrade to the lowest classification (Category 3), which impacts their ability to conduct business with government entities.

Note on Expenses

The rule stated in the 2009 article remains absolutely firm: The employer is responsible for all expenses incurred upon joining WPS (bank fees, service charges, etc.). Employers are strictly prohibited from deducting any WPS-related costs from workers' wages.

 

 

Sponsering Your Parents - UAE visa Rules

sponsor your parents, and/or parents-in-law, for a residence visa in Dubai and the UAE. Note that a residence visa is not the same as a family UAE visit visa. The residence visa process involves 2 steps. First obtaining an entry permit, second step is to convert entry permit to a residence visa after parents arrive in the UAE. New UAE visa rules from July 2008 have the following requirements and restrictions for sponsoring parents.
Both mother and father must be sponsored, unless one is dead, or they are divorced.
You should be the only provider supporting them (if they live with other children in another country then you'll have a tough job proving that).
Minimum salary for sponsor is AED 6000 per month if in company provided accommodation, or AED 7000 month if paying for own accommodation.
Medical insurance for parents is required.
Your accommodation should be at least 2 bedrooms.
AED 5000 deposit for each parent requried.
Residence visa is limited to one year at a time (renewable).
Your sponsorship is only for a residence visa. Your parents are not allowed to work. But don't tell them that otherwise they'll never do the dishes.
Documents required for sponsoring parents residence visa
Your passport with residence visa.
Copy of your parents passport for entry permit, original passport for residence visa.
Photograph of each parent (one specified by immigration department but bring a spare).
Letter attested by your embassy to verify your relationship, and that you are the sole provider.
Salary certificate, or labour contract (salary needs to be specified).
Tenancy contract, attested by the Dubai Land Department in Dubai. If the number of bedrooms is not stated, then you'll need a letter from your landlord stating the number of bedrooms. This might not apply to professional employees on high salaries (unconfirmed).
Application form - get this at the typing center when you apply.
Cost of parents entry permit is AED 110 (add 100 dhs for urgent applications) and typing center fees - should be less than 50 dhs.
Cost of parents residence visa is AED 110 per year (add 100 dhs for urgent applications), Empost fees (10 dhs?), and typing center fee.
Procedure to sponsor parents for UAE residence visa
Visit the Naturalization and Residence Department of the emirate which issued you your residence visa e.g. Dubai NRD. If you live and/or work in a different emirate, you could try there - bring labour card and/or tenancy contract to prove it - but don't be surprised if you get shooed away.
Bring all documents to the DNRD and submit them. An Approval Committee will decide whether or not you will be allowed to sponsor your parents (takes about 2 weeks). If yes then go to the typing center with the approval letter and your documents to fill in the visa application. Pay your fees and they'll fill in the application form. Take the application form back to the DNRD (ask the typing center for directions). If you've paid urgent processing fees, you should be issued with an entry permit (entry visa) for your parents while you wait, otherwise it should be ready in a couple of days.
Send the entry permit or a copy to your parents. If you send the copy, you'll need to deposit the original at the airport a few hours before they arrive. After your parents arrive, take them, or send them, to a medical clinic to do the blood test and x-ray required of all UAE expat residents.
Bring the entry permits and original passports, the deposit receipt, another 3 photos, and all previous documentation (or whatever's left of it) back to the typing center of the immigration department to convert their entry permit to a residence visa. A second 5000 dhs deposit is not required. You need to do this within 60 days of their arrival (DNRD information) but that sounds generous. Allow 30 days maximum to avoid surprise overstaying fines.
Your parents passports should be sent back within a week or two with the new residence visa pasted in, sooner if you pay the urgent fees. If your parents arrive in the UAE on another entry permit of some sort - UAE tourist visa, visit visa on arrival, or sponsored visit visa, you might be able to transfer them to a residence visa but you'll still need all the other documentation. It is not necessary to depart and re-enter the UAE when changing entry permit to residence visa.
Renewal of parents residence visa
Visit the typing center at the immigration department with your passport, your parents passports, deposit receipt, and fees (same as application fees the first time). Get the form filled in, head over to the residency department, hand in all the documents and wait a week or two.

Sponsoring Parents in UAE - Ministry denies visa policy has changed

The Ministry of Interior has denied rumours that it has stopped issuing visas to the immediate relatives of expatriate residents. Major General Nasser Al Awadi Al Menhali, Director-General of the Naturalisation and Residency Department, told that visas are still being issued to immediate family members, and especially to parents.

He added that a husband has the right to sponsor his wife, parents and in-laws. Wives in turn have the right to sponsor their husbands, parents and in-laws. Parents have the right to sponsor their children if they are under the age of 21. The ministry takes into consideration humanitarian and social imperatives and sometimes issues visas to children above the age of 21 who want to visit their families or continue their education.

A local Arabic-language newspaper reported yesterday that the Naturalisation and Residency Department had stopped issuing visas to parents of residents, but continued to issue them to husbands, wives and children. The report prompted panicked expatriates to call newspapers and residency department offices.

Al Menhali said there had been no change in the UAE's naturalisation and residency laws. Applicants are required to deposit a guarantee of Dh5,000, in addition to the visa application fee

Labour Ministry issues fresh warning to dormant firms

The Ministry of Labour has warned again that it would not tolerate violations by dormant companies which fail to report the closure of any of their units, leading to loss of jobs by their workers, Alkhaleej newspaper reported .Companies violating existing rules would be fined Dh50,000 for each sacked worker while all establishments sponsored by the owner of the abusing firm would be blacklisted by the government, the paper said.

The Ministry issued the warning during an open meeting organised by the Ministry of Labour on Monday for employees and private sector representative.

Officials said the Ministry had received several applications from dormant or shut firms reporting their new status and asking for permission to transfer the visas of labourers of such firms to other establishments belonging to the same owner.

“In case employers or workers do not inform the Ministry that such an institution no longer exists and that they are not employed any more, then the Ministry will transfer their visas to other establishment belonging to the employers without prior request or approval by the owners,” the paper quoted Mohammed Jameel, Director of the Guidance Section at the Ministry, as saying.He said workers laid off as a result of a shut firm must inform the Ministry within three months of the date of closure.“Should they do so more than three months after the closure, then the Ministry will consider them as jobless and violators of the residence law…in this case, we will cancel their visas and give them a work ban for one year.”

No More 6-Month Ban: UAE Labour Law Prioritizes Employment Mobility

This detailed, multi-layered article from around 2010 provides a great snapshot of the UAE's employment and residency rules during a period of significant transition (post-2005 ban lifting, pre-2011/2022 Labour Law).

All the specific ban durations (6-month, 1-year, etc.), the role of the Ministry of Interior in employment bans, the concept of the NOC, and the exact ban lifting fees mentioned are now OBSOLETE.

The current framework, established by the Federal Decree-Law No. 33 of 2021 (the UAE Labour Law), simplifies and liberalizes employment mobility, effectively removing the automatic bans described in the article.

Here is an analysis and update of the core concepts presented in the article:

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🚫 UAE Employment Mobility & Bans: The New Era (2025 Update)

The specific rules regarding automatic 6-month and 1-year labour bans imposed by the Ministry of Labour (MoL, now MoHRE) are no longer applicable under the Federal Decree-Law No. 33 of 2021. The current law prioritizes employment flexibility and simplifies the process of switching jobs.

1. The Employment Ban (Work Permit Restriction)

2010 Context (Article)	Current (2025) Law & Status
Automatic 6-Month Ban: Imposed on most workers who resigned/cancelled their visa.	ABOLISHED. The automatic ban is removed. An employee can switch jobs immediately after the notice period or cancellation, provided the termination was legal.
NOC (No Objection Certificate): Essential for avoiding the ban if leaving an unlimited contract early.	ABOLISHED. The NOC is no longer required for an employee to transfer their work permit to a new employer.
Ban Lifting Fees (AED 3,000-6,000): Paid to lift the automatic ban.	ABOLISHED. Since the automatic ban is removed, there is generally no ban lifting fee for a standard job change.
Ban Exceptions (Engineers, Accountants, etc.): Certain professions were exempt from the ban.	ABOLISHED. The list of exempted professions is irrelevant as the general ban is removed for all.

2. Immigration Ban (Entry Ban)

The distinction between the Employment Ban (MoL/MoHRE) and the Immigration Ban (MoI/ICP) remains valid, but the rules are clearer.

• Criminal/Security Ban (Permanent): STILL APPLICABLE. An entry ban is still imposed by the Public Prosecution or Judiciary for criminal offenses (theft, fraud, drug offenses, etc.) or serious national security violations. This is a permanent ban and is monitored via the Integrated Systems (including eye scanning).
• Immigration Violation Ban (Absconding/Overstay): STILL APPLICABLE. If an employee is reported as absconding (leaving work for more than 7 consecutive days without a legitimate reason), they face a Work Permit Restriction (ban) and an entry ban (often for a year) and must pay fines. Overstaying a visa also results in daily fines and may lead to a temporary ban upon exit.

3. Domestic Help (Exclusion in 2005)

The article noted domestic help were temporarily excluded from the 2005 ban lifting.

• Current Status: Domestic workers are now covered under Federal Decree-Law No. 9 of 2022 Regarding Domestic Workers. They have specific rights and contracts, and their transfer procedures are governed separately, though the overall trend is toward greater flexibility and protection.

4. Current Job Change Requirements

Under the new law, job switching is based on the notice period specified in the contract:

Contract Scenario	Requirement to Switch Jobs
Unlimited Contract (Pre-2022):	Serve the full notice period (minimum 30 days, maximum 90 days) agreed upon in the contract.
Fixed-Term Contract (Post-2022):	Serve the full notice period (minimum 30 days, maximum 90 days) agreed upon, provided the employee has completed the probationary period.
Termination during Probation:	No ban if the employee gives 14 days' written notice to switch to a new employer in the UAE, or a 1-month notice if leaving the country.

Key Takeaway: For workers who terminate their contract lawfully (serving the notice period), the automatic labour ban is eliminated, allowing for seamless job switching.