Can Your Company Delay Salary Because of Late Vendor Payments?
Most of the workers listen to reasons such as the client has not paid yet or the vendor payments are pending. However, according to the UAE labour law, they do not qualify to be used as an excuse to withhold your pay. Payments by employers should be made to you on the specific date and in the same manner as required by your contract, without any exception for cash flow or vendor problems.
Article 22 of the UAE Employment Law (Federal Decree Law No. 33 of 2021) makes the rule very clear. According to it, all employers should remunerate the wages on the agreed date and those caused by outside monetary reasons are not an excuse to escape the obligation.
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What Counts as a Salary Delay
Based on the Ministerial Resolution No. 598 of 2022, a salary is officially deemed as delayed in case it has not been paid 15 days after the actual date.
That means:
- When your payday is the 1st and your pay is not in by the 16th, it is legally a delay.
- A single-day delay can be a cause of concern when it happens regularly.
The law also prevents the employer from continuously postponing the payment in the name of waiting to receive vendor payments.
Employer Penalties for Salary Delays
The Ministry of Human Resources and Emiratisation (MOHRE) has the mandate to intervene when an organisation does not meet salary obligations at the right time.
Penalties may include:
- Formal warnings or fines for the employer.
- Freezing of new work permits, which allows the company not to hire new employees.
- Lawsuits for severe or recurrent offences.
In the case of companies, this may also translate to loss of reputation, government approvals as well as more visits by the inspection officials.
In essence, the UAE government considers delayed salaries to be a severe labour crime, especially when the employer attempts to excuse it through the delays in the external business.
Why Vendor Payments Aren’t a Legal Excuse
The employers occasionally say that they are unable to pay the salary until clients or vendors make payments. Nevertheless, the UAE labour law considers payment of salary as a priority as costs regardless of vendor, project, or payments on any contract.
It is upon the employer to take care of business cash-flow issues, and not leave them to the load of the employee.
It is the expectation of the law that companies also maintain financial planning to make sure that even in the slow ends of the business cycle or when the vendors are not paid, wages should still be paid.
Connecting payment to the vendor with salary, the employers are subject to the risk of violating both Article 22 and Ministerial Resolution 598 of 2022.
What You Can Do If Your Salary Is Delayed
Unless your company pays you in 15 days, it is evident that there are legal ways to see through this.
Discuss It Internally First
Speak to your human resources department or manager. In some cases, there are short administrative delays that are short. Communication should be kept in writing, which should be recorded.
Failure to do so within 15 days, complain to MOHRE.
You can reach out through:
- The MOHRE mobile app
- The hotline: 600 590 000
- Your nearest Tasheel or Twa-fouq centre
Provide Documentation
Retain duplicate copies of your employment contract, payslips and any written notice regarding delay. These are necessary in your complaint.
Stay Professional
Do not quit showing up to work or be on the angry side. Use legal avenues- it builds up your case.
What Happens After You File a Complaint
When MOHRE is presented with your complaint, it will be investigated. It typically proceeds by:
- Get in touch with your employer to get clarification.
- Asking to provide payment evidence or clarification.
- Providing warnings or administrative punishment when there is no reasonable ground.
In other instances, MOHRE may take the issue to labour courts, particularly where many employees are involved or where an organisation is constantly postponing payment.
In case the employer does not raise the salary, MOHRE also has the option of suspending new work permits or blacklisting the company until the payment of salaries is made.
How This Protects Workers
This legal framework is strict in order to save the stress of financial burden among the employees due to irregular payments. Late salaries can lead to:
- Missed rent or loan payments.
- Cheques bounced or fines imposed by banks.
- Stress and job insecurity.
The UAE government guarantees equal labour practices and financial security of both local and foreign employees by setting payment deadlines.
What Employers Should Understand
Salaries have to be regarded as non-negotiable financial obligations by the employer. Although a payment to a vendor has been overdue, they must:
- Keep payroll cash reserves.
- Pay your staff before you can pay your vendors or suppliers.
- Be open, but do not break the law.
- Not doing this may lead to fines, inspections and reputation building a bad business image.
To summarise, delays in payment of vendors are a business risk and do not justify violation of the labour law.
Real-World Example
Several UAE workers have recently complained of the late payment of salaries, claiming that the employer was using unpaid invoices of the people he was paying. Nevertheless, MOHRE has made it clear that a delay in salaries on the basis of external payments is an infringement of Article 22 that can be punished with severe consequences.
This point of publicity reminds the employer that he is the sole payroll responsibility and not the financial partners and clients of the company.
Key Takeaways
- You must receive your salary on time according to your contract.
- Delays in making external payments are not a legal defence.
- Any delay of 15 days is officially a breach.
- MOHRE is free to fine, warn or penalise employers who make payment late.
- The employees may submit a complaint through the app, hotline or centre.
Final Word
No, your company cannot pay you late because of the late payment of your vendors. The UAE legislature secures your right to be paid the salary on the date, which is stipulated in your agreement. That is clear in Article 22 of Federal Decree Law No. 33 of 2021 and Ministerial Resolution 598 of 2022.
In case your employer does not pay within 15 days, use the legal action path first of all, internal communication and in case of no response, MOHRE, using the app, hotline 600 590 000, or your nearest Taskeel or Twa-fouq office.







