Are you a business owner in the United Arab Emirates? If you operate on the mainland, your business may be required to register with the Ministry of Human Resources and Emiratisation (MOHRE). MOHRE recently used its social media channels to notify business owners on how to eliminate a WPS-imposed ban on their business. But what exactly is the WPS system, and how does a ban work? Here’s everything you need to know.
What is WPS?
The Wages Protection System (WPS) is an electronic salary transfer system that allows employers to pay employees through banks, exchange bureaus, and other financial institutions that have been approved to provide the service. The technology, which was developed by the UAE Central Bank, allows the Ministry of Human Resources and Emiratisation (MOHRE) to construct a database that tracks wage payments in the private sector, ensuring that agreed-upon wages are paid on time and in full. The WPS will benefit all categories of workers and will cover all institutions registered with the Ministry across all sectors and industries.
Why would a company have a ban?
MOHRE issued a ministerial decree especially on WPS earlier this year, Ministerial Resolution No. 43 of 2022 about the Wages Protection System, which included extensive regulations.
Workers must be paid through WPS if an establishment is registered with MOHRE, according to the decision. Companies that fail to comply with the WPS system may be fined, depending on the severity of the infringement. For example, if a company fails to pay employees on time, the Ministry will monitor it electronically to ensure compliance, sending reminders and notices. The establishment’s ability to issue new work permits will be suspended on the seventeenth day after the due date, meaning it will be unable to hire new employees. This prohibition on issuing new work permits will remain in effect until the company meets the WPS requirements.
How can a ban be lifted?
action to lift any restrictions that may have been placed on it:
– Employers must pay their employees’ salaries through WPS.
– Employers must pay their registered employees’ wages through WPS, even if they are working outside of the nation.
– If a [salary] transfer error occurs, the establishment must request a pay period adjustment service through the chosen service centers, businessmen services, Tawseel, or the establishment’s facilitation system.
– If the ban is not lifted after salaries are paid, the establishment must request technical assistance and provide documentation.
– If a fishing boat or taxi business is prohibited, a technical support request must be made.
