UAE warns employers against non-compliance with Wage Protection System
Companies are exempt from obligation to implement WPS only in eight instances
ABU DHABI: The Ministry of Human Resources and Emiratisation (MOHRE) has announced that 99 per cent of the work force in private sector establishments registered with the ministry across the country are covered by the Wage Protection System (WPS).
In an official update, MOHRE said companies are exempt from the obligation to implement the system in eight instances: When the employee files a labour complaint related to wages that is referred to the judiciary; when a report of absence from work is filed against an employee; when the employee is new (within 30 days of the wage being due); when the employee is on unpaid leave (provided that proof is provided); and four types of establishments - fishing boats owned by UAE citizens, public taxis owned by UAE citizens, banks and places of worship.
WPS, which MOHRE has been implementing in cooperation with the Central Bank of the UAE since 2009, seeks to provide a safe, effective and robust mechanism to simplify the process of timely payment of wages to employees by employers.
MOHRE stated that WPS has been developed using technology that allows the ministry to create a database of information on the payment of wages to private sector workers, and to monitor the commitment of operating establishments to pay the agreed wages at a set time. The wages are transferred through banks, exchange companies and financial institutions.
MOHRE said it has a number of automated control and punitive procedures that ensure the optimal application of WPS. For instance, on the due date that the wages are to be paid, there is a follow up with the establishment electronically, with a notification and alert sent again on the third and tenth day after the due date in the event of non-compliance.
New work permits
On the 17th day, if the wages remain unpaid, the ministry stops granting new work permits to the establishment, with a notification sent to the owner. An establishment that does not commit to paying the wages is included in the electronic monitoring and inspection system, following which inspectors carry out an inspection visit to the establishment (with more than 50 employees), issuing a warning as per procedure.
Non-compliance after a month and a half from the due date will result in the Public Prosecution Office being intimated of the violation. The establishment’s data is then sent to the competent authorities at the federal and local levels to take necessary legal measures. An administrative fine of Dh1,000 per worker and a maximum of Dh20,000 is levied in accordance with Cabinet Resolution No. 21 of 2022 if the violation is repeated within six month. The classification of the facility is moved to the third category, in accordance with Ministerial Resolution No. (209) of 2022.
MOHRE said all private sector establishments are obliged to pay the wages of their employees and workers on the due date through the electronic system, so that the wages are due from the first day of the month following the end of the period on which the wages are based in the employment contract (if the period is not specified in the employment contract, the wages must be paid at least once every month). The employer is considered late in paying the wage if he does not pay it to the worker within the first 15 days from the due date, unless the employment contract stipulates a shorter period.
Guide on workers’ rights
The UAE has also issued a guide to inform workers of their rights and duties. The guide, titled “Know Your Rights” includes the following points:
1. Employee must sign employment contract after coming to the UAE.
2. The employer is prohibited from charging the worker recruitment and employment fees and costs, or collecting them from the worker, whether directly or indirectly.
3. Employee should keep a copy of the signed job offer.
4. The terms and conditions of the employment contract must match the job offer signed.
5. Employee should contact MOHRE immediately if the employer does not provide the agreed upon job opportunity or if he does not receive wages in full and on time.
6. Employee has the right to leave the job at any time, but must be aware of your legal obligations.
7. Employee must keep supporting documents in a safe place.
Labour Counselling and Claims Centre
Workers can seek assistance regarding any labour grievances or legal inquiries about their rights by contacting the Labour Counselling and Claims Centre of MOHRE which may be reached at toll free number 80084. The ministry can also be contacted through its website or smart applications, or by visiting its offices.
Labour lawsuits are exempt from court fees at all stages of litigation, implementation and requests filed by workers or their heirs, provided they do not exceed Dh100,000.