![]() These unfair activities often led to unending labour and industrial disputes and a breakdown of trust between employers and employees. Such a system became necessary due to the unscrupulous actions of some employers in refusing to pay the correct wages or salaries, delaying such payments, using offshore accounts as a way to avoid required payments, or using funds from illegal sources. The WPS has an electronic database where UAE companies must upload their Salary Information Files (more on this later) for the MOHRE and the Central Bank of UAE to confirm and validate every detail before giving permission for the onward transfer of money to employees. It ensures that UAE workers are paid the right wages or salaries (based on their employment contracts ) and in a timely fashion. On September 1, 2019, the MOHRE issued further regulations to update the WPS regime.īasically, the WPS is an electronic wages transfer system that oversees the payment of workers’ salaries in the UAE. The rules and regulations guiding its operations were further strengthened by the Ministerial Decree No. It was an innovation of the Ministry of Human Resources and Emiratisation (MOHRE) in association with the Central Bank of UAE. The WPS became a reality in July, 2009 with the Ministerial Decree No. What is WPS in the UAE: Introduction, origin and benefits ![]() ![]() What is WPS in the UAE: Introduction, origin, and benefitsĪt the end of this article, you will have a strong grasp of the ins and outs of WPS.In this article, we’ll do a deep dive of what the WPS is all about. Īlso, as an employee, understanding the system is a prelude to knowing your rights and holding your employer(s) accountable. Consequently, answering the question “what is WPS in the UAE” in a comprehensive manner is important for both employers and employees.Īs an employer, understanding the system is essential since failure to comply with some of its regulations can result in fines and penalties. While the UAE’s Wage Protection System (WPS) has been an important part of the country’s labour relations since 2009, many new and old employers and employees still struggle to understand what it is all about. ![]()
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