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03 December 2023

Most firms adhere to wage protection plan

Most firms adhere to wage protection plan. (AP)

By Wam

A large number of companies have adhered to the Wage Protection System (WPS) that came into force since last December, said Minister of Labour Saqr Ghobash.

At the same time, the system cannot be considered errorless and ideal, he added.

WPS is a UAE initiative to safeguard punctual payment of wages of the worker's in the private sector via transfers through selected financial institutions authorised and regulated by the government.

Ghobash told Al Khaleej newspaper that WPS is undergoing a very important test, during which it has been proved that it has several aspects of merits that are well in place. However, it is possible that certain defects may appear in due course, and a team has been tasked to review and study the observations of all stakeholders.

Executive Director for Inspection Affairs at the Labour Ministry Maher Al Oubed heads this team.

"We are open and will accept all observations. We are ready to discuss each case individually and to deal with it positively once we are convinced of its logic and reasoning," said Ghobash.

Alluding to the errors happened in the system of electronic transfer of salaries, Ghobash clarified the ministry was rejecting entire transaction of a company if it was proved that there was a default in the payment of a single employee.

As this needs to be altered, he said he has given necessary orders to change this system, so that all correct transactions can be accepted and incorrect ones returned without affecting the interests of other employees of the company.

With WPS, the Ministry is able to monitor the regular payment of wages in full.

Defaulting companies could then be easily identified and penalised.


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