The United Arab Emirates is one of the largest business destinations in the world and it is continuously attracting the best talent from all over the world. The UAE possesses one of the most efficient labour markets which is due to its excellent employment policies, rules, and regulations The new UAE labour law is one such initiative of the government of the UAE which aims to highlight and secure the obligations and rights of the employers and employees in the UAE. For anyone who wants to work as an employee in any UAE company, it is significant to understand the employment regulations of the country e.g, how wages are categorized and paid through WPS payroll processing, etc.
Following is everything that the new labour law has mentioned about defining the amount or type of wage in the employment contract along with defining the payment of wage through WPS payroll in the UAE;
- According to the provisions of the new labour law, it is mandatory for the employer to specify the type and amount of wage that would be given to the employee at the time of making an employment contract. All these details about the wage should exist in written form in the employment contract.
- In case the employer has not specified the details of wage in the employment contract and any type of dispute occurs between the employee and the employer, the competent court will consider the dispute as a labour dispute and will take relevant actions.
- In accordance with the provisions of the new labour law about the payment of wages, the employer is supposed to pay employees’ wages through WPS payroll processing right on the due date. The employer needs to follow the standards that the ministry has set for the payment of wages in the UAE.
- If no other currency has been selected by the employer and the employee at the time of contract making, the employer needs to pay the employee’s wage in United Arab Emirates Dirhams through WPS payroll processing.
- If the employee does not want to receive his wage in Dirhams then another currency needs to be specified in the employment contract at the time of contract making.
Does the employer need to pay the employee for the time he takes to travel between the workplace and his residence?
As such, the employer does not need to pay the employee for the time he travels between his residence and workplace and the employee cannot claim against the employer over it. However, if the job of the employee requires him to travel and both parties have agreed upon it in the employment contract then the employer might have to pay for it. Other cases in which the employer might need to pay for transportation is when the employee spends more time traveling to the workplace due to bad climate conditions. Also, if the employee is traveling in a vehicle provided by the employer and happens to suffer an accident then the employer might have to pay for the repairing costs. In these cases, the employee can claim against the employer if he denies paying.
When should the employer pay the employee?
According to the provisions of the new labour law and the WPS payroll processing regulations in the UAE, the employer is required to pay the employee at least one time in a month. It depends on the type of contract and the type of work that the employee does. Some employees get paid on weekly basis and some on a piecework basis and so on. In general, the wages are due when the month starts. However, employers can also pay wages according to the time scheduled in the employment contract. This is because some employees wish to be paid as the month starts and some like to be paid at the end of the month. If the payment is scheduled in the employment contract, it needs to be followed. The payment of wages is considered late if the employer fails to pay the employees within the first 2 weeks after the due date that has been set in the payment schedule.
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Whether you are an employee or employer in the UAE, it is highly significant for you to comprehend and acknowledge the rights that have been prescribed by the new labour law of 2021. The new labour law has highlighted almost every aspect of employment that you need to understand while working or operating in the UAE. Instead of spending hours to find and learn your concerned topics in the legislation, you can simply consult payroll middle east experts who will help you understand your areas of concern at hand. If you are interested in the WPS payroll service, payroll middle east are capable of providing you with the best outsourced services. Consult experts for utmost guidance.