Can a UAE employer delegate salary payment to another company?

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Yes. Article 5 of Resolution 340 of 2026 lets an establishment delegate wage payment to whoever it chooses, provided MOHRE receives the delegate's details and a copy of the delegation or contract with its scope and limits. The establishment remains responsible, and every late-payment measure applies to it if the delegate fails.

What this means for labour supply and payroll providers

Contractors using a payroll bureau, a group treasury company or an exchange house cannot pass the compliance risk to them. If the delegate pays on the 3rd, the contractor is late. The contractor's remedy is against the delegate under their contract.

Delegation is not subcontracting labour

Workers supplied by a labour supply company are that company's employees, and it carries its own WPS duty. Delegation in Article 5 is about who presses the payment button for the contractor's own workers.

How SupaJack Construct helps

The payroll run produces the SIF file the bank or delegate uploads, and the payroll batch records the run, so the contractor can show what it instructed and when.

Related tools and guides

See payroll and WPS in SupaJack Construct, the WPS SIF file checker, the answer on what a WPS SIF file is, the UAE labour law guide for contractors, the final settlement calculator, the unpaid leave deduction calculator, the answer on salary deduction limits and the meaning of WPS.

Worked example

A contractor's group finance company pays salaries for three subsidiaries. MOHRE has the delegation contract. One month the finance company pays on the 4th. Each subsidiary is treated as late from the 2nd and faces the day-5 permit suspension, even though the delay was the finance company's.

Questions people ask

Must MOHRE be told about the delegate?

Yes, with the delegate's details and the delegation or contract.

Who is responsible if the delegate pays late?

The establishment.

Can the employer recover its losses?

From the delegate, under their contract.

Sources

  1. Ministerial Resolution No. 340 of 2026 concerning the Wage Protection System (MOHRE)
  2. Wages Protection System (MOHRE guidance portal)

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