AutoSmart GuidebooksWhat 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
Open a standard to see the law behind it, what is checked, what it can cost and the evidence. Ideal fix times are counted from audit submission.
LB-01Salaries paid by the 1st (WPS)Immediate
- The law
- Federal Decree-Law No. 33 of 2021 on Labour Relations (as amended by Decree-Law 9/2024) · Ministerial Resolution 340/2026 (from 1 Jun 2026): pay by the 1st of the month through WPS
- What we check
- Salaries are paid through WPS by the 1st of each month for the previous month, with at least 85% of wages paid to every employee.
- What it can cost
- Day 5: permits suspended. Day 11: fines. Day 21: legal action and travel bans on officials.
- Evidence
- WPS reports
LB-02Valid work permits onlyImmediate
- The law
- Federal Decree-Law No. 33 of 2021 on Labour Relations (as amended by Decree-Law 9/2024) · Decree-Law 9/2024: employing workers without a work permit
- What we check
- Nobody works at the dealership (including valeters, drivers and contractors on site) without a valid MoHRE work permit sponsored or authorised for that role.
- What it can cost
- AED 100,000-1,000,000, multiplied per worker.
- Evidence
- Permit list
LB-03Contracts registered on MoHRE7 days
- The law
- Federal Decree-Law No. 33 of 2021 on Labour Relations (as amended by Decree-Law 9/2024) · FDL 33/2021 fixed-term contracts registered with MoHRE
- What we check
- Every employee has a MoHRE-registered contract matching actual pay, role and hours, in Arabic (and another language where used).
- What it can cost
- Mismatches lead to disputes, fines and classification downgrades.
- Evidence
- Contracts + WPS
LB-04Midday breakImmediate
- The law
- Federal Decree-Law No. 33 of 2021 on Labour Relations (as amended by Decree-Law 9/2024) · MoHRE midday break: 15 June-15 September, 12:30-3:00pm, outdoor work
- What we check
- Outdoor staff (car wash, lot, delivery prep) don't work in direct sun from 12:30pm to 3:00pm between 15 June and 15 September, and have shade and water.
- What it can cost
- AED 5,000 per worker, up to AED 50,000, plus file suspension.
- Evidence
- Photos + roster
LB-05End-of-service gratuity paid72 hours
- The law
- Federal Decree-Law No. 33 of 2021 on Labour Relations (as amended by Decree-Law 9/2024) · FDL 33/2021 Art. 51 end-of- service gratuity · payment within 14 days
- What we check
- Leavers receive their gratuity (21 days' basic pay per year for the first 5 years, 30 days after) and final dues within 14 days of leaving.
- What it can cost
- Complaints become disputes, fines and permit suspensions.
- Evidence
- Exit files
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.
