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UAE to control, monitor all wage payments from Sept.
Published in The Saudi Gazette on 24 - 07 - 2009

The United Arab Emirates government will control and monitor all private sector wage payments from September to protect workers' rights, as some crisis-hit firms delay salaries.
The payments system will give the labor ministry access to information on all salary and wage payments in the private sector, the ministry said.
All institutions registered with the United Arab Emirates' labor ministry will have to pay their workers wages and salaries from September this year through a new system that seeks to protect the rights of workers in the country.
UAE Labor Minister Saqr Ghobash has issued a decree enforcing the Wage Protection System (WPS), which involves transfer of salaries and wages through selected financial institutions, authorized and regulated by the government, according to a report filed by the Emirate's official WAM news agency.
A WPS office in the ministry will ensure that workers are not subjected to any deductions or charges to get their salaries. Ghobash said the WPS would boost transparency and stability in the regional labor market. The WPS will project the country as a model worth emulating in the area of boosting the rights of workers, he added.
Under the 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 then send the salary file to the agent for payment, and the agent will then pay the employees. The system will also feed the labor ministry with the necessary data and information of all salary and wage payments in the private sector.
Ahmad Saif Belhasa, consultant to the ministry and chairman of UAE Contractors Association, said “when workers don't receive their wages for three to four months this creates a problem.


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