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No permits for WPS violators

UAE MoL gets tough on workers' salaries

Under the WPS, workers now have salaries paid directly into banks
Under the WPS, workers now have salaries paid directly into banks

Companies that do not comply with the UAE’s recently commenced Wage Protection System (WPS) will find the MoL will stop issuing them with new licenses and work permits, according to reports.

The WPS system began on September 1 and is designed to ensure workers’ salaries are transferred to banks. The ministry will stop granting any new licences to companies violating the rules and their matter might be transferred to the court. No licence will be issued until a decision is made by the court, Humaid bin Deemas, acting director general of the MoL said to the Khaleej Times.

Under the system, around 2.1 million workers in 4,100 companies in the UAE will have their salaries transferred electronically to their bank. “Companies should start transferring wages from September 1. It means transferring September’s salaries will take place in the first 15 days of October. The first operation for transferring the wages by WPS will be issued only by the end of October,” said bin Deemas.

He urged companies to start paying September salaries through the new system before the deadline. Violators will be punished by withholding licenses until salaries are paid, while repeat offenders will be brought before the courts.

The WPS enables the MoL to check if companies are failing to pay workers or making unlawful deductions, with banks supplying details to the MoL.
 

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Nov 09, 2019