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Does a UAE employer have to pay wages when there is no work?

Last updated

Yes. Article 26 of Federal Decree-Law No. 33 of 2021 says wages are paid for work, and the employer must let the worker work or pay the agreed wage. Article 17 of Cabinet Resolution No. 1 of 2022 adds that where the cause is beyond its control, it must tell the worker and still guarantee the wage.

On this page
  1. If the situation continues
  2. Project gaps in construction
  3. How SupaJack Construct helps
  4. Related tools and guides
  5. Questions people ask

If the situation continues

The worker may notify the employer and file a complaint with MOHRE. The Ministry can give the employer a grace period, and if it fails to respond, cancel the work permit and let the worker transfer to another employer without losing rights.

Project gaps in construction

Workers waiting for the next project are still owed wages. Contractors who stand crews down between contracts without pay are in breach, and late wages trigger WPS escalation from the 2nd of the following month.

How SupaJack Construct helps

Workers can be assigned to an idle or overhead cost centre between projects, so their wages are still paid through payroll and the cost of the gap is visible.

Related tools and guides

See the UAE labour law guide for contractors, the final settlement calculator, the gratuity calculator, the annual leave calculator, the unpaid leave deduction calculator, payroll and WPS in SupaJack Construct, time and attendance and the meaning of basic salary.

Worked example

A contractor's project is suspended for six weeks by the client. Its 40 workers have no site to go to. Under Article 26 their wages remain due for those six weeks. The contractor can claim the cost from the client if the contract allows, but cannot withhold it from the workers.

Questions people ask

Is the wage due if the client stops the project?

Yes. The employer still pays the agreed wage.

Can the worker transfer?

MOHRE can cancel the permit and allow a transfer if the employer does not respond.

Must the employer tell the worker?

Yes, where the cause is beyond its control.

Sources

  1. Federal Decree-Law No. 33 of 2021 on the Regulation of Employment Relationship (MOHRE, consolidated)
  2. Cabinet Resolution No. 1 of 2022 implementing Federal Decree-Law No. 33 of 2021 (in the MOHRE consolidated text)

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