They will receive their wages in bank accounts or from money exchange centers, rather than cash-in-hand.

The Ministry of Labour, under its “wage protection system” said that can cross-verify worker payments by reviewing the wage lists every month. However, it did not specify when the lists would be made available.

As per the decision by the Cabinet, companies are required to pay workers through banks. But most banks show little interest in transferring wages of unskilled labourers as they generate no significant returns.

The Central Bank and the Labour Ministry have entered into an agreement last year, which permits them to set a system that ensures regular wage payment.

The Labour Minister, Saqr Ghobash, said that the electronic system emphasizes on wage protection and guarantees receipt of data in due time.

Although 500,000 workers have already received their wages electronically, the ministry has so far made no mechanism to ensure that no illegal deductions were made. With the new system, employers will have to choose either a bank or a money exchange agency for transfers, Ghobhash said.

He also warned employers who failed to abide by the new system, and said that his ministry has already referred 16 companies to the public prosecutor’s office for failing to pay their workers regularly.

Posted on 22/5/2009

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