Decree issued by UAE minister to enforce WPS

September will see the commencement of an electronic salary transfer system, which will aim at observing and protecting the wages of millions of workers in the UAE. Set deadlines were issued Wednesday by decree, for the several categories of businesses.

By the end of November, companies with more than 100 employees must comply with the new system; however, those with fewer than 15 workers have until May 31, 2010. Earlier, it was specified by Ghobash that the system would be mandatory when it is launched, and action would be taken against those who do not comply.

The decree, which was issued by Labor Minister Saqr Ghobash Saeed Ghobash, will make sure that all institutions registered under the Labor Ministry pay workers' wages through select financial institutions, authorized and regulated by the government. The main aim of the Wages Protection System (WPS), developed by the Central Bank and the ministry, is to provide transparency and stability to the labor market.

All the enrolled banks and companies and salary transfers are listed in the system, and any delay can be monitored and reported to the ministry; where a WPS Office will make sure that the process is functioning smoothly.

The minister said: "It is our ethical and legal responsibilities to always strive to come up with innovative means of implementing our leadership's policies which aim at providing secured and stable environment and at protecting the rights of all segments of the society."

"The ministry is committed to ensuring the full implementation of the new system and to working closely with all concerned stakeholders in the system to equally protect the interest of all parties," said Acting Director General at the ministry, Humaid bin Deemas.

He continued that positive response has been received for the system, which was used to transfer the wages of about 28,000 workers in June.

A legal action can be taken against companies that provide false information about the wages of employees.