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Discuss this article (6 Comments)Gov't to enforce new wage protection system - minister
by This email address is being protected from spam bots, you need Javascript enabled to view it on Tuesday, 26 May 2009
WAGE PROTECTION: Workers' pay will be paid on time and in full under the government's new scheme. (Getty Images)
The government has “means and ways” of ensuring companies comply with its new Wages Protection System (WPS) for workers, the UAE minister of labour said on Tuesday.
Saqr Ghobash, was addressing members of the media after the launch of the WPS in Abu Dhabi – a new scheme that involves measures to make sure the Emirates’ construction workers are paid on time, and in full.
However, he refused to say what punishments would be meted out to firms that failed to adhere to the initiative, which makes the electronic transfer of labourers’ wages from employer to employee mandatory.
Ghobash said: “We will make sure to implement it. We have means and ways. We believe they’re (firms) willing to cooperate.”
The scheme, a joint initiative between the ministry, banks, money exchange houses and the UAE Central Bank, will cover 500,000 workers in the first phase.
Announcing the initiative on April 28, Ghobash said: ''The project, a core element in the ministry's strategy, will cut the way on any delay in payment of salaries and unjustifiable dedications."
''The UAE will not accept under any circumstance abuse of rights of workers living on its soil. The political leadership doesn't tolerate any breach of law and is keen to comply with and enforce international labour conventions,'' Ghobash added.
READERS' COMMENTS
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wages
Posted by andrew mcdonnell on Friday 29 May 2009 at 12:26 UAE time
I had a company that employed 120 people. If I ever paid late and an employee complained at the labour then my labour file was frozen and I couldn't issue any visas for about 2 months until it was unblocked. We were terrified of a complaint and the labourers knew it and took advantage and threatened to complain about all sorts of minor things. Thats why I sold up and left a year ago. When I tried to do bank payment the banks all wanted AED 25 for each transfer and money off each employee for account maintenance. No one wanted to pay so we stayed on cash. I was just so sick of the red tape I went back to europe. I made money in the UAE but it was not worth the cost to my health.
Posted by andrew mcdonnell on Friday 29 May 2009 at 12:26 UAE time
I had a company that employed 120 people. If I ever paid late and an employee complained at the labour then my labour file was frozen and I couldn't issue any visas for about 2 months until it was unblocked. We were terrified of a complaint and the labourers knew it and took advantage and threatened to complain about all sorts of minor things. Thats why I sold up and left a year ago. When I tried to do bank payment the banks all wanted AED 25 for each transfer and money off each employee for account maintenance. No one wanted to pay so we stayed on cash. I was just so sick of the red tape I went back to europe. I made money in the UAE but it was not worth the cost to my health.
I think this is a great idea but...
Posted by Sand Jockey, Dubai on Thursday 28 May 2009 at 08:27 UAE time
...the difficulty comes in the implementation.
1. If it is going to cost companies money they will likely take it from the employee salaries. Not right but unless there is a rule to stop it they will.
2. It shouldn't be limited by company size. If you have one employee (and all companies do, even if it is the owner) there should be a way to ensure salary payments.
HOWEVER, that being said, why is big brother (government) getting involved in such a way? Because they are getting involved it tells me that there is a problem, and if there is a problem why not penalize those causing the problem?
Either make the system foolproof and apply to all companies or just penalize, heavily, those who don't play by the rules.
SJ
Posted by Sand Jockey, Dubai on Thursday 28 May 2009 at 08:27 UAE time
...the difficulty comes in the implementation.
1. If it is going to cost companies money they will likely take it from the employee salaries. Not right but unless there is a rule to stop it they will.
2. It shouldn't be limited by company size. If you have one employee (and all companies do, even if it is the owner) there should be a way to ensure salary payments.
HOWEVER, that being said, why is big brother (government) getting involved in such a way? Because they are getting involved it tells me that there is a problem, and if there is a problem why not penalize those causing the problem?
Either make the system foolproof and apply to all companies or just penalize, heavily, those who don't play by the rules.
SJ
Just asking...
Posted by myla, Dubai, United Arab emirates on Wednesday 27 May 2009 at 21:43 UAE time
I asked the Ministry of Labor re: this through their hotline,they told me if u have only 50 employees above it is compulsory. We are only 35 in the company, so they told me it will be depend on the company. And our last hope vanish...
Posted by myla, Dubai, United Arab emirates on Wednesday 27 May 2009 at 21:43 UAE time
I asked the Ministry of Labor re: this through their hotline,they told me if u have only 50 employees above it is compulsory. We are only 35 in the company, so they told me it will be depend on the company. And our last hope vanish...
This will stick...
Posted by Funky Town, Dubai on Wednesday 27 May 2009 at 14:04 UAE time
for the obvious reason that there is monetary interest for the financial institutions. They will be the ones blowing the whistle on companies not paying salaries and wages on time and in full to make sure that their cut is secured. I think everyone's interest should be connected to those of banks then we will all have a pre-paid protector who will do whatever it takes to make sure that the wheels are turning.
Posted by Funky Town, Dubai on Wednesday 27 May 2009 at 14:04 UAE time
for the obvious reason that there is monetary interest for the financial institutions. They will be the ones blowing the whistle on companies not paying salaries and wages on time and in full to make sure that their cut is secured. I think everyone's interest should be connected to those of banks then we will all have a pre-paid protector who will do whatever it takes to make sure that the wheels are turning.
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