The Ministry of Human Resources and Emiratisation (MoHRE) recently issued an update to the Wages Protection System (WPS) pursuant to the Ministerial Resolution No.43 of 2022. WPS is designed to ensure that companies meet their obligations to pay their employees promptly and protect them from financial deflection.
The new amends to this resolution are:
- All employee salaries must be paid on the due date through the WPS
- All wages must be transferred by the 15th day of the month
- Employers have a 30-day grace period to transfer new employees’ salaries via the WPS
Penalties in case of non-adherence to the WPS:
- Work permits will be barred starting from the 16th day of delay in wages
- Companies that delay wages for more than one month will be referred to the judicial authorities
- In the UAE, if the owner of the company has another registered office with WPS, then the same penalties will be applicable to them
- The owners will not be allowed to register for any other company
- Bank guarantees of employees will be liquidated
- The company will have to face low grading to the third category as per the Classification Law
Process For Employers to Register with WPS
In the UAE, employers in the private sector can register for the Wage Protection System (WPS) on the MOHRE official website, and then have access to it through a login portal. The list of documents and details needed are:
- Employee list with details of the bank/agent the company works with
- Bank account information
- The agent/bank details an employee has an account with
- The date on which the salary needs to be paid
For more information on compliance with the WPS, please email: enquiries@cbdcorporateservices.com