Abu Dhabi, UAE, 26^th May 2009: Affirming the UAE Government's commitment to the wage protection principle, H.E. Saqr Ghobash, Minister of Labour, and H.E. Sultan Bin Nasser Al Suwaidi, Central BankCentral Bank Governor, today launched the Wages Protection System (WPS) - an initiative to safeguard workers' wage payments via transfers though selected state financial institutions.

H.E. Ghobash stressed the importance of WPS in enhancing stability of labour relations. He also praised H.E. the Governor of the Central BankCentral Bank and his staff full support to implement the federal government order to pay workers through banks across the UAE. The federal order was to be implemented from January 2008 but some companies have cited difficulties in finding banks which are willing to open accounts for low income workers as the reason for the delay.

To fully implement WPS, the Minister of Labour created a dedicated WPS office, linked directly to the executive director of inspection affairs, in October 2008. The objectives of the WPS office are: to set up and implement a comprehensive system to ensure wages are paid on time, to guarantee legitimate working hours are adhered to and to implement the wages transfer project through banks and other financial institutions.

"The system reflects the Government's willingness to safeguard the basic rights of all concerned parties. Our co-operation with the Central BankCentral Bank has resulted in the development of an effective mechanism to provide the Ministry of LabourMinistry of Labour with data and information on the private sector's wage payment processes, which we aim to constantly improve. UAE businesses will now adhere to timely wage payment at the exact amounts agreed with employees," said H.E Ghobash, who announced WPS during a ceremony hosted by the Ministry of LabourMinistry of Labour at the National Theatre in Abu Dhabi.

"This initiative greatly enhances our ability to implement preventive measures to reduce labour disputes pertaining to wages and will offer solutions that will guard workers and employers against keeping large amount of cash at work places."

In accordance with WPS, an employer now has the right to choose one or more of the participating agents licensed by the Central BankCentral Bank system. Once a bank receives workers' wages, information and data will be sent to the WPS, so it can notify the agent for payment. The same information will be simultaneously received by the Ministry of LabourMinistry of Labour.

The Minister said that the system will mark a qualitative move in relation to wages protection. 500 thousand workers are currently covered by WSP and H.E. Ghobash expressed his hope that this new system will ensure exceeding this number and include the entire work force in UAE, especially unskilled workers who are in desperate need of such protection.

The Central BankCentral Bank will disseminate a detailed, periodical list of all WPS-accredited banks, exchange companies and service providers.

"We have developed and introduced a new system which enables the Ministry of LabourMinistry of Labour to track companies not abiding to the wage payment system and not paying their workers' on time. WPS will provide a series of innovative solutions including notifications to businesses which fail to comply and delay paying wages.  It is based on flexible technology that allows for future system upgrades. The Central BankCentral Bank's IT Department will spearhead the initiative with the Ministry of LabourMinistry of Labour," said H.E. Al Suwaidi.

WPS will provide a series of innovative solutions including notifications to businesses which fail to comply and delay paying wages. And, according to the Minister of Labour, registration to the system is compulsory and any non-abiding businesses will be subject to disciplinary action.

"We will issue a Ministerial Order specifying how to participate in WPS which also relays the implementation time frame. Businesses will be given sufficient lead-in to prepare themselves for WPS integration. After this period, any company failing to register will not be eligible for new work permits, and will face disciplinary measures," H.E. Ghobash concluded.

-Ends-

For more information please visit: www.mol.gov.ae or contact:
Tina Flores/ Action UAE
Mobile +971 55 983 1423,
Email: tina.f@actionprgroup.com

© Press Release 2009

 

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