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What is WPS Dubai
Wages Protection System (WPS) is an electronic salary transfer system that allows institutions to pay wages via banks, bureaux de change, and financial institutions approved and authorized to provide the service. Developed by the UAE Central , the system allows the Ministry of Labor to create a database that records wage payments within the private sector, guaranteeing timely and complete payment of agreed-upon wages. The WPS covers all institutions registered with the Ministry across all sectors and industries and will benefit different categories of labor.
Requirements for WPS Dubai
Wages Protection System is a mandatory legal requirement in the UAE for businesses registered under the MoHRE. Such registered companies must adhere to this system as their mode of salary payment. There are some requirements to be fulfilled for joining WPS as the company summarized as follows:
Wage Protection System – Payment Process
Following the steps below, once the account has been successfully registered, the next step is to complete the payment.
Penalties for the Delayed Payment of the Wages
WPS is compulsory for all businesses or companies who have registered with MoHRE as they must adhere to the system to pay wages for the workers. So, there will be consequences who fail to join in WPS. The companies that fail to join WPS will be blocked from all new work permits until the salary is paid fully. If the employer continued the violation, then all the new work permits will be denied for a month after the wages are paid. For instance, of third and repeated violation employer will be banned for the work permit for two months, and for the fourth, it will be three.
The ban will only be lifted only after the complete payment of the worker’s wage if the institution that delayed the wage payment a month after the due date will be subjected to suspension of their licenses. The work permits of such companies will be denied along with the all-other institutions owned by the owner of the violated institution, i.e., no new visas are allowed for the new applicants of the same owner. Hence such companies will be downgraded as the ‘Third category’ Let’s look into the fines for evading WPS. The apply for the WPS submission and the steps to avoid any penalties could have been easily carried out if a competent corporate lawyer is hired at the time of company registration. To cover all corporate commercial costumes required.
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