UAE: Can Companies Delay Salary Due to Late Payments from External Vendors? If your employer in the UAE is saying “we’ll pay your salary once we receive funds from external vendors”, you’re likely wondering: can companies delay salary due to late vendor payments? The short answer: no — under the UAE labour law you are entitled to your salary on the due date. Let’s explore how this works in 2025, what the law says, and what you can do.
Why your salary must be paid on time
Key legal provisions
- Under Federal Decree‑Law No. 33 of 2021 (the UAE Labour Law), Article 22 states: “The amount or type of wage shall be specified in the employment contract … The employer is obligated to pay the wages to his Workers on their due dates in accordance with the systems approved in the Ministry…”
- Also under the Cabinet Resolution No. 1 of 2022 (Implementing Regulations) Article 16 says: “Subject to the provisions of Article 22 of the Decree-Law: … the employer shall commit to pay his workers’ wages on due dates … through the Wage Protection System (WPS) or any other system approved by the Ministry.”
- Under Ministerial Resolution No. 598 of 2022 concerning the WPS, Article 1(2) states an employer who fails to make the payment of wages within 15 days of the due date will be considered late (unless the employment contract provides otherwise).
What does “due date” mean?
In practice, if your employment contract specifies a payday (for example “salary to be paid on 1st of the following month”), then that is your due date. If the contract doesn’t, normally you must be paid at least once a month.
Consequence: Vendor delays don’t justify withholding salary
Because the law sets a clear employer obligation to pay wages on time, an employer cannot make external vendor payment delays a valid reason for delaying your salary. A recent article in the Khaleej Times states:
“Based on the aforementioned provisions of law, your employer cannot legally justify delaying salary payments on the basis of delay in receiving external payments from its customers.”
What constitutes a “delay” in salary payment?
- According to Ministerial Resolution 598/2022: if salary is not paid within 15 days of the due date (unless contract says otherwise), it is considered late.
- WPS rules: employers are monitored electronically and payments must go through the WPS or approved system.
Timeline of employer measures
| Days past due | What happens |
|---|---|
| Up to due date | Normal payment window |
| 3rd & 10th day after due date | Reminders/notifications may be sent to employer. |
| 15 + days after due date | Employer considered in default. (Actionable under law) |
| 17 + days (for companies with 50+ workers) | Work permit issuance may be suspended; inspections triggered. |
| 45 + days | For major violations, flagging to public prosecution possible. |
Practical tip for employees
If you have not received your salary and the due date has passed by more than 15 days, your employer is legally non-compliant. Document communications, check your contract, and prepare to file a complaint if required.
“Pending vendor payments” excuse – why it falls flat
Employer’s cash flow issues vs employee rights
When a company says: “We’ll pay you once we collect from our vendor/customer”, they are effectively shifting their business risk to you, the employee. Under UAE law:
- Your salary is a contractual right, not conditional on the employer’s incoming cash.
- Article 22 places the onus on employer to “pay wages … on their due dates.”
What about the contract clause?
It is possible that an employment contract wrongly includes a clause that ties salary payment to vendor receipts. However:
- Clauses that contradict mandatory provisions of the labour law (which give minimum rights) are null and void.
- So even if employer claims contract allows delay beyond 15 days, Ministerial Resolution 598 still controls “unless provided otherwise in contract”, but the contract cannot waive fundamental rights.
Employer’s possible defences – weak ones
- Claiming “we are waiting for vendor funds” is not a recognised legal justification for salary delay.
- Claiming “we submitted wages but bank delay” may need proof (WPS logs) and still doesn’t excuse delays beyond 15 days.
- Free-zone entities may have different regimes, but mainland private-sector employers are bound by MOHRE/WPS rules.
What can you do if your salary is delayed?
Step-by-step employee action plan
- Check employment contract – look for salary date, currency, payment terms.
- Calculate delay – Note due date vs actual date. More than 15 days delay = employer in default.
- Notify the employer in writing – E-mail or message asking for explanation, copy for your records.
- Gather evidence – Payslips, bank statements, WPS logs (if you have access), contract copy.
- **File a labour complaint with Ministry of Human Resources and Emiratisation (MOHRE) or relevant free‐zone authority. The complaint can be confidential.
- Explore settlement or mediation – MOHRE may mediate.
- Consider legal action – If employer still fails, MOHRE may refer to courts or impose sanctions (e.g., suspension of work permits).
What employees should avoid doing
- Don’t stop working or abscond without proper notice this may harm your case.
- Avoid waiver/signing documents that say you accept late payment without conditions.
- Don’t expose yourself to visa/permit risks comply with employer communications while preserving your rights.
Employer obligations & what HR must ensure
Payment through WPS and approved systems
All private-sector establishments must pay via the Wage Protection System or approved method. Employers must maintain records and ensure timely transfer.
Contract clarity & salary currency
Contracts must clearly state salary amount / type and payment date. Wages should be in AED unless contract expressly allows another currency.
Penalties for non-compliance
Employers risk:
- Suspension of new work permit issuance
- Administrative fines and inspections
- Repeated violations may result in legal referral and higher consequences.
Best practices for HR/compliance
- Run salary payments on schedule, well in advance of due date to account for bank processing time.
- Monitor WPS reports for any failed salary transfers or discrepancies.
- Communicate proactively with employees if any delay risk emerges (though vendor delays are not legally acceptable grounds).
- Maintain full payroll and contract records for at least the statutory period.
Employer justifications vs legal standing
| Employer justification | Legal standing in UAE 2025 | What it means for employee |
|---|---|---|
| “We are waiting for customer/vendor payment” | Invalid – salary must be paid on due date regardless. | You can escalate claim. |
| “We need to delay because our cash flow is tight” | Not accepted by MOHRE/WPS rules. | Employer in default if > 15 days. |
| “Contract says payment will be made when funds received” | Contract cannot override statutory minimum rights. | You retain right to claim. |
| “We paid but bank delay” | Possibly valid if you can prove transfer. | Ask employer to show WPS log. |
| “We’re a free-zone entity, different rules apply” | Depends on free-zone regulatory regime – check contract/zone law. | Seek zone-specific advice |
FAQs
Q1. Can my employer delay salary because the client/vendor hasn’t paid the company yet?
No. Under UAE labour law, your salary must be paid on the due date. A pending vendor payment is not a valid legal reason to delay salary.
Q2. When is a salary considered delayed or late in the UAE?
If salary is not paid within 15 days of the due date (unless contract states otherwise), the employer is in default.
Q3. What system must be used to pay salaries in the UAE private sector?
The WPS (Wage Protection System) or any other Ministry-approved electronic salary payment system must be used.
Q4. What should I do if my salary is delayed?
Check your contract, document the delay, notify your employer, gather evidence (pay slips, bank statements), and file a complaint with MOHRE if needed.
Q5. Does the employer’s financial condition or vendor delay affect my rights?
No. Your rights to timely salary payment are protected by law and do not depend on the company’s cash-flow or external payment receipts.
Conclusion
In the UAE in 2025, salary payment delays are not justified by delays in vendor payments or client receipts. Under Federal Decree-Law 33 of 2021, its Implementing Regulations, and Ministerial Resolution 598/2022, employers must pay wages on the due date and not more than 15 days late. If you face salary delays, you have clear legal recourse.
