Dubai: Are you a business owner in the UAE? If so, your establishment may be registered with the Ministry of Human Resources and Emiratisation (MOHRE), if it operates on the mainland. Recently, MOHRE took to its social media channels to inform establishment owners of how they can lift a ban on their company, that may have been placed under the WPS system. But what is the WPS system and what does a ban entail? Here is all you need to know.
What is WPS?
Wages Protection System (WPS) is an electronic salary transfer system that allows institutions to pay wages via banks, exchange bureaus, and financial institutions approved and authorised to provide the service. Developed by the UAE Central Bank, the system allows the Ministry of Human Resources and Emiratisation (MOHRE) 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 workers.
Why would a company have a ban?
Earlier this year, MOHRE issued a ministerial decree specifically on WPS - Ministerial Resolution No. 43 of 2022 regarding Wages Protection System, where detailed regulations were issued.
As per the resolution, an establishment which is registered with MOHRE is required to pay workers their wages through WPS. Companies failing to do so face fines, depending on the severity of violation within the WPS system. For example, if a company fails to pay workers on the due date, it will be monitored electronically to ensure its compliance, with reminders and notifications sent from the Ministry. On the seventeenth day after the due date, the establishment will face suspension of the issuance of new work permits, which means that it cannot hire new employees. This ban on issuance of new work permits will stay in force until the company complies with the WPS requirements.
How can a ban be lifted?
According to the post by MOHRE, these are the steps a company needs to take in order to lift a ban that may have been placed on it:
- Establishment must pay their workers’ wages via WPS.
- Establishment must pay their registered workers’ wages via WPS, even if they are outside the country.
- In case of a [salary] transfer error, the establishment needs to request a salary period adjustment service through the adopted services centres, businessmen services, Tawseel, or the establishments’ facilitation system.
- If the ban is not lifted even if wages are paid, the establishment needs to request technical support, with proof attached.
- If a fishing boat or taxi establishment is banned, a technical support request needs to be submitted.