What this guidebook covers
From 1 June 2026, UAE salaries must be paid through the Wage Protection System by the 1st of the month, with no grace period. Penalties escalate automatically: warnings, permit suspension, fines, disputes, then legal action and travel bans. Unauthorised employment is fined up to AED 1,000,000.
This guidebook covers the 5 labour standards most likely to affect a dealer group, with 12 checkpoints: WPS salaries, valid work permits, contracts registered with MoHRE, the midday break and end-of-service gratuity.
The 5 labour standards
| Code | Standard | Ideal fix time |
|---|---|---|
| LB-01 | Salaries paid by the 1st (WPS) | Immediate |
| LB-02 | Valid work permits only | Immediate |
| LB-03 | Contracts registered on MoHRE | 7 days |
| LB-04 | Midday break | Immediate |
| LB-05 | End-of-service gratuity paid | 72 hours |
How to run a UAE labour law and wages audit, step by step
- Confirm what applies. This covers mainland, MoHRE-regulated entities; free zones may have their own employment rules.
- Walk the site, standard by standard. Score each of the 12 checkpoints Pass, Fail or N/A. N/A only where the standard rules it out, with the reason recorded. Check the last WPS file date, sample permits against who is actually working (including the car wash), and visit outdoor areas at midday in summer.
- Capture the evidence. A pass counts only with proof captured at the time of the audit: WPS payment records, work permits, MoHRE contracts, summer rosters and gratuity calculations.
- Give every fail an owner and a fix time. Record what you saw and who owns the fix. Each standard carries an ideal fix time, from immediate to 7 days, counted from audit submission (see the table above).
- Fix it, then prove it. The site fixes the cause and uploads proof of closure; the auditor checks the proof before closing the finding.
- Re-check at the next audit. Confirm closed findings stay closed, and look for the same fail at your other sites so one gap doesn't repeat across the network.
Who this guidebook is for
- Dealer principals and GMs
- HR and payroll managers
- Auditors
A reference document, not legal advice. Fines and rules change: check the current text with the regulator or your legal adviser before acting.
