The UAE government has introduced a new Wages Protection System (WPS) in order to safeguard payment of workers salaries, to reduce labour dispute pertaining to wages and to protect the rights of employees.
The new system which involves transfer of salaries through few select financial institutions, authorized and regulated by the government, is hoped to benefit over four million employees when it becomes operational.
The companies in the UAE will now pay the employees the exact amount within stipulated time. The new system also guards workers and employers from keeping large amount in cash at work places, said Saqr Gobash, the Minister of Labour.
The Central Bank Governor, Nasser Al Suwaidi said that the new system is based on latest technologies, with provision for more amendments, if required.
The WPS is mandatory for all businesses in the UAE, although no deadline has been fixed yet for execution. The defaulting employers will soon be brought to the notice of the concerned, the officials at Labour Ministry warned. The companies that fail to integrate WPS will not be eligible for new work permits, Gobash said.
It should be noted that the WPS helps by offering wage protection to unskilled workers who are much in need of such protection. At present about 50,000 workers are already receiving wages electronically.
This new system indicates the willingness by the government to safeguard the basic rights of all concerned, thereby improving stability of the labour market, Gobash said.
Under the new system, the employer can choose any registered agent to participate in the WPS. On receiving details about workers wages, the bank or institution, will send this information electronically to WPS. The WPS will send the salary file to the agent for payment, and the agent will then pay the employees, explained Babu Santhanam, Senior IT Manager, Central Bank.
A dedicated WPS Office in the Ministry will ensure that the process is functioning smoothly. The workers will not be subjected to any deductions or charges to get their salaries. Posted on 27/5/2009
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