UAE | Employment
More labourers being paid through banks
Companies are on track to move to the new electronic salary payment system, Labour Ministry officials and corporate representatives said.
- By Wafa Issa, Staff Reporter
- Published: 00:39 February 28, 2008
- Image Credit: Gulf News Archive
- A group of labourers line up to withdraw money from an ATM.
Dubai: Companies are on track to move to the new electronic salary payment system, Labour Ministry officials and corporate representatives said.
Ahmad Kajour, Executive Director for Customer Affairs at the Ministry, told Gulf News the ministry expects that every company will pay its workers' salaries through banks by the end of this year.
"The implementation will occur in several stages. In the first stage we are looking to force 'high risk' companies to implement the decision. We gave them February 5 as the deadline for submitting their salary certificates to us," adding that "high risk" companies are companies which have violated labour law in the past.
The Cabinet issued the decision in June 2007 and instructed companies to either open bank accounts for their employees or end disbursement services by January 2008. It is hoped the initiative will make it easier for the Ministry of Labour to check on companies that do not pay on time. Violating companies will face fierce penalties.
In the second stage, the Ministry will enforce the rule on the whole of the construction sector by the end of February, followed by the retail sector and then move on to other sectors. Companies that do not adhere will not be able to issue new work permits, Kajour said.
"However, it is worth keeping in mind that many of the major companies across the country already pay their workers through banks so we are not starting from scratch," said Kajour.
Around 250,000 construction workers already benefit from the electronic payment system, according to the ministry's latest statistics.
Many workers are aware that they are to move from a cash payment to electronic payment.
"We were told by our foreman that we would be paid through cards soon but we were not told how this would happen," said one construction worker.
Some workers, however, say they do not know anything of the new system.
"We have not been told anything yet. We were paid cash last month and I think that we will be paid in the same way this month as well," said one worker.
Yeihia Rammal, human resources manager at Fujeirah National Construction which has more than 3,500 workers, said his company had signed an agreement with a financial institution to pay their workers electronically.
"We have already signed the contract but there are many questions that need to be answered. Will workers be able to change their habits, will they adapt to the new system quickly or will we face problems following this change?" said Rammal.
Miriam Azami, human resources director at Al Shafar General Contracting Company, with over 15,000 workers, said her company began paying most of its workers' salaries through a bank over a year ago and describe the new move as successful.
Solution: New cards for workers
Banks in the UAE are embarking on new measures to meet the demands of companies following the cabinet decision which requires that all workers' salaries be paid electronically.
John Malouf, Head of the Retail Banking Group of the National Bank of Abu Dhabi (NBAD), said that they have launched "Ratibi", a pre-paid card designed to replace the payment of employee wages settled in cash.
The card has no minimum balance or annual fees. An Emirates NBD spokesperson said that the HR department can approach the bank and open a bulk account for its labourers.
Banks will increase their ATM network and some will provide mobile ATMs to be used on payday.
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