UAE Company Closed Without Paying You? The Government Has an Insurance for This (2026)

The company payroll stopped. Then the office went quiet. Then someone said the company was closing. Or maybe your employer simply disappeared — calls go unanswered, HR is unreachable, and the money you worked for is sitting nowhere.

This is the situation thousands of workers in the UAE face every year. And most of them don’t know that a government insurance scheme exists specifically for this — one that can pay out up to AED 20,000 when your UAE employer cannot pay salary or has shut down entirely.

This guide explains exactly what the UAE Workers Protection Programme (WPP) is, what it covers, and the precise steps to trigger a payout when your employer can’t or won’t pay.

What Is the UAE Workers Protection Programme (WPP)?

The Workers Protection Programme is a mandatory insurance scheme established by MOHRE in 2018 under the framework of UAE Federal Decree-Law No. 33 of 2021. Every private sector employer registered with MOHRE is required to enrol their workers in this programme.

The programme operates through an insurance pool — managed by Dubai Insurance — that collects premiums from employers and pays out claims when employers fail to meet their financial obligations to workers.

Source: UAE Official Government Portal (u.ae — Insurance against defaulting employers), Dubai Insurance WPP official website (dubins-wpp.ae)

What the WPP Actually Covers

When a MOHRE order or court judgment confirms that your employer cannot or will not pay, the WPP insurance pool covers the following:

• Unpaid salary — up to the last 120 days (approximately 4 months) before your last working day
• End of service gratuity — the full amount you’re legally owed under UAE Labour Law
• Repatriation costs — return flight ticket to your home country if your employer is responsible for repatriation and has failed to provide it
• Other legally entitled dues — unused annual leave balance, notice period compensation, and other entitlements confirmed by MOHRE or court order

How to Trigger a WPP Payout: Step by Step

This is the part most articles get wrong. Workers cannot directly file an insurance claim with Dubai Insurance. The WPP pays out only after a formal MOHRE order or court judgment has been issued. Here is the exact process:

Step 1 — File a MOHRE Complaint Immediately

Everything starts here. If your employer has stopped paying salaries, is closing down, or has disappeared, file your MOHRE complaint on the same day you find out.

Three ways to file (all free):

• Call 800-60 — MOHRE hotline, multiple languages, available during business hours for complaints
• MOHRE Smart Services app (iOS/Android) — log in with UAE Pass → Services → Employees → My Salary Complaint
• Tasheel Service Centre — in person, bring Emirates ID, work permit, employment contract, and bank statements

What to bring/have ready:

• Your Emirates ID and work permit number
• Employment contract showing your salary amount
• Bank statements showing salary was not received
• Employer’s company name and trade licence number
• Any messages from HR or management about payment delays or company closure

Step 2 — MOHRE Mediation and Order

Once your complaint is filed, MOHRE contacts both sides within 2–5 working days. In cases where the employer has closed or disappeared:

• If the employer cannot be contacted or refuses to engage, MOHRE escalates directly
• For claims under AED 50,000: MOHRE can issue a legally binding decision without going to court
• For claims over AED 50,000: MOHRE issues a No Objection Certificate (NOC) to take the case to Labour Court — free for claims under AED 100,000

This MOHRE order or court judgment is the trigger that activates the WPP insurance payout.

Step 3 — Labour Execution Department (MOHRE Handles This — You Don’t Need to Go)

After a MOHRE decision or court judgment is issued, MOHRE automatically refers the case to the Labour Execution Department. You do not need to visit this department or take any separate action. This step happens behind the scenes.

The Labour Execution Department attempts to collect from the employer first. If the employer genuinely cannot pay — due to bankruptcy, closure, or insolvency — the department certifies this inability to pay. That certification is automatically sent to the WPP insurance pool, which then releases payment to you directly.

Your only job at this stage: stay reachable. Make sure MOHRE has your current contact details and bank account information so the payout can reach you when it’s processed.

Step 4 — WPP Insurance Pool Pays Out

Once the Labour Execution Department confirms the employer cannot pay, the Dubai Insurance WPP pool releases the funds directly to you — up to AED 20,000. Processing typically takes 15–30 working days from the date of the order.

In 2024–2025, the UAE government paid out over AED 289 million in unpaid wages and gratuity through this mechanism, covering thousands of workers whose employers failed to pay. The system works — but only if you start the process by filing with MOHRE.

What to Do If Your Company Is Currently Closing

Company closure is a time-sensitive situation. The moment you hear that your employer is shutting down, every day of delay works against you.

1. File your MOHRE complaint that same day. MOHRE can place a hold on the company’s deregistration process if worker wages are outstanding — effectively blocking the closure until dues are settled or the insurance claim is processed.
2. Request a Labour Ban on the company. MOHRE can block the employer from completing deregistration until all employee entitlements are cleared.
3. Calculate your full entitlement — unpaid salary, gratuity, unused leave, notice period — before filing so your complaint is complete from the start. For the gratuity calculation, see: UAE End of Service Gratuity: How to Calculate Exactly What You’re Owed.
4. Do not resign. If you resign while the company is closing, it may complicate your claim. Stay employed on paper until the dispute is formally resolved or your complaint is filed.

What the WPP Does NOT Cover

Understanding the limits is as important as knowing the coverage:

• Amounts above AED 20,000 — the cap is firm. For larger claims, you pursue the employer directly through MOHRE or court.
• Cases where the employer CAN pay but refuses to — the WPP is specifically for employers who are genuinely unable to pay (bankrupt, insolvent, closed). If your employer is choosing not to pay, the standard MOHRE complaint process applies. See: UAE Employer Not Paying Salary? Here’s Exactly What to Do.
• Workers not registered with MOHRE — free zone employees under their own free zone authority are not covered by the mainland WPP. Check your free zone authority for equivalent protections.
• Salary beyond 120 days — the unpaid salary coverage is limited to the last 4 months before your last working day.

WPP vs. ILOE — Two Different Schemes

Many workers confuse the WPP with the UAE’s Involuntary Loss of Employment (ILOE) insurance, which launched in 2023. They are completely separate:

If your employer has closed down and you have also lost your job involuntarily, you may be eligible for both — WPP for your unpaid wages and gratuity, and ILOE for income replacement while you look for new work.

How to claim ILOE separately:

1. Go to iloe.ae — the official ILOE portal
2. Log in with your UAE Pass
3. Submit your claim within 30 days of becoming unemployed — this deadline is strict
4. Upload your Emirates ID and proof of involuntary job loss (termination letter, company closure notice, or MOHRE complaint reference number)
5. If approved, you receive 60% of your average salary for up to 3 months

Important: ILOE is only available if you enrolled before losing your job — meaning your employer registered you for the scheme (AED 5–10/month deducted from your salary). Check your payslips for an “ILOE” or “unemployment insurance” deduction line. If you were enrolled, file immediately — the 30-day window does not extend.

For Filipino Workers (OFWs)

If your employer has closed or cannot pay and you are an OFW, contact MWO Dubai in parallel with your MOHRE complaint. MWO can send a formal notice to your employer, coordinate with MOHRE, and assist with emergency repatriation if needed.

Frequently Asked Questions

Do I need to do anything to be enrolled in WPP?

No. Your employer is legally required to enrol you in the WPP when you are registered with MOHRE. You do not pay anything and do not need to sign up separately. The coverage is automatic for all private sector mainland workers.

My employer paid some months but not others. What gets covered?

The WPP covers unpaid salary for up to the last 120 days (4 months) before your last working day. If you are owed more than 4 months of back salary, the WPP covers the most recent 4 months. Earlier unpaid months may still be pursued through the Labour Court, but will not be covered by the WPP insurance pool.

Can I claim WPP if I have already left the UAE?

Yes. You can file a MOHRE complaint remotely through the MOHRE app or 800-60 from outside the UAE. The 2-year statute of limitations applies from the date salary was due (Article 54(9), Federal Decree-Law No. 33 of 2021). OFWs can also file through MWO Dubai on their behalf.

How long does the WPP payout take?

After the Labour Execution Department certifies the employer’s inability to pay, the insurance pool typically processes the payout within 15–30 working days. The total timeline from MOHRE complaint to payout — assuming the employer is confirmed unable to pay — is typically 4–8 weeks depending on case complexity.

My employer is in a free zone. Am I covered by WPP?

The WPP covers mainland MOHRE-registered workers. Free zone employees are generally not covered under the mainland WPP. However, many free zones have their own worker protection mechanisms. Contact your free zone authority to understand what equivalent protections exist for you.

What if my claim is more than AED 20,000?

The WPP pays up to AED 20,000. For any amount above this cap, your employer remains legally liable. You can pursue the remaining balance through the Labour Court. The court process is free for claims under AED 100,000. The WPP payout and the court claim for the balance can run in parallel.

Does filing for WPP affect my ability to find a new job in the UAE?

No. Filing a MOHRE complaint and triggering the WPP process does not create any ban or restriction on future employment in the UAE. If anything, having a resolved MOHRE complaint on record demonstrates that the dispute was formally settled.

Key Contacts

The Bottom Line

Related Articles

• UAE Employer Not Paying Salary? Here’s Exactly What to Do (2026 Guide)
• UAE Visa Cancelled? You Can Still Claim Salary and Gratuity (2026)
• UAE End of Service Gratuity: How to Calculate Exactly What You’re Owed (2026)

Legal disclaimer: This article is for informational purposes only and does not constitute legal advice. WPP coverage terms and claim processes may change. Verify current programme details at dubins-wpp.ae and u.ae before proceeding.

Last updated: April 2026 | Sources: UAE Official Government Portal (u.ae — Insurance against defaulting employers), Dubai Insurance WPP official website (dubins-wpp.ae), The National — UAE workers receive AED 289 million under government insurance scheme (December 2025), UAE Federal Decree-Law No. 33 of 2021, MOHRE official communications.