UAE issues a new decision regarding the wages of resident and citizen workers

ahmed atef - | UAE

The Ministry of Human Resources and Emiratization has identified three measures that private sector companies have implemented in order to avoid violating the "wage protection system." This system was initiated by the ministry in order to ensure that businesses pay their employees' wages through banks, exchange companies, and other financial institutions that provide the service.

The procedures include, first and foremost, the obligation to pay the wages of the company's employees beginning on the first day of each month, secondly, the requirement to pay the wages of the company's employees through the "wage protection system," and thirdly, the guarantee that payment of wages is made to each and every employee of the company.

Wage protection system

In order to ensure that the company's transactions with the ministry are carried out without any hiccups and to protect the rights of both parties involved in the employment connection, the ministry emphasized the significance of the company's commitment to the "wage protection system."

Enhancing the stability of the contractual relationship

With the goal of enhancing the stability of the contractual relationship between the two parties and enhancing the productivity of workers, the ministry made a call for the commitment of private sector establishments to pay their employees' wages through the wage protection system on time. This commitment was based on the idea that the ministry would use innovative mechanisms and work systems, as well as various channels that would support the ministry's operational capabilities, in order to protect the wages of all categories of workers in the labor market within the wage protection system.

The ministry outlined the steps that will be taken in the event that the facility's employees' wages are not paid by the due date. Notifications and alerts are sent to the non-committed facility on the third and tenth days after the due date, prompting them to make the payment. By the 17th day after the due date, restrictions are imposed on the non-committed facility.

Payment of wages associated with employees

According to the ministry, the system has been established using a technology that enables the ministry to create a database and information on the payment of wages associated with employees working in the private sector, as well as the extent of the commitment of operational firms to pay wages at the agreed upon time and quantity. A wide range of industries and activities are included in the scope of the wage protection system (WPS), which encompasses all establishments that are registered with the ministry. Additionally, the system provides benefits to all segments and categories of workers.

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ahmed atef
ahmed atef
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