The Permanent Committee of Labour Affairs in Dubai (PCLAD) plans to introduce a retention system requiring contractors to lodge two months’ salary for every site worker.
The move is aimed at preventing contractors from blackmailing workers with grievances into returning to work.
“In this way, we will be able to make sure that the workers are paid their dues,” committee member Marwan Abdulla Al Mohammed told Construction Week.
He said: “Instead of the company keeping two months salaries of the workers, which is the standard practice here, we will keep it.
“In the event of a dispute between the worker and employer, the latter will not have any kind of advantage over the workers or will not be able to hold on to that sum of money.”
Currently, in the UAE, it is common practice for construction companies to keep two months salaries of their workers.
Contractors can be penalised by the government for workers who abscond, so many firms retain a proportion of wages owed as ‘collateral’.
But some contractors retain the equivalent of up to eight months in wages, and the practice led to a series of strikes on building sites across the emirate earlier this year.
“The UAE labour law says that a worker is to be paid each month, but that is not what is being practiced at the moment,” said Al Mohammed.
“It is very difficult to change the way the whole industry operates. It is standard practice here for companies to keep two months wages but we are trying to change all that as soon as we can.
“Currently, we feel this is the best solution as it is impossible to change the way things work overnight.
“It is better that the workers’ money is kept safe with us than with their employers who they do not trust,” he said.
The PCLAD has been initiated by HH Sheikh Mohammed bin Rashid Al Maktoum, in order to protect workers rights in the country. It comprises members from Dubai Police, Dubai Municipality, Immigration, Labour Ministry and the Chambers of Commerce.
Follow us on
