UAE Includes 19 Professions in Wage Protection System
The UAE has implemented the Wage Protection System (WPS) for domestic workers as part of its continuous efforts to protect their rights and control contractual interactions between parties. Employers can use this electronic system to pay payments to domestic workers through banks or other financial institutions that have been licensed by the UAE Central Bank.
In this regard, the WPS for domestic workers was introduced by the Ministry of Human Resources and Emiratization (MoHRE), enabling employers to electronically transfer salaries through banks or other financial institutions that have been approved by the Central Bank.
By ensuring that wages are paid on time and in line with the terms of the contract, the method seeks to improve transparency and lower the likelihood of disagreements between employers and employees. Additionally, it offers a straightforward and verifiable way to demonstrate financial compliance.
Professions Featured
The system, which is now applicable to a variety of occupations, such as private coach, private tutor, home caregiver, private representative, and private agricultural engineer, becomes required on April 1, 2023. For other jobs, system registration is still voluntary during this phase.
Nineteen occupations are covered under the system:
- The housekeeper
- A seaman
- Protect
- Shepherd
- The Stableman
- Trainer for camels
- The Falconer
- Worker
- Cooking
- A babysitter
- A farmer
- The gardener
- Private coach
- Individual tutoring
- In-home caregiver
- Private agent
- A private agricultural engineer
- A private chauffeur
Certain situations are exempt from the system's required pay transfer, such as when a labor dispute is still proceeding in court, a report of work abandonment has been submitted, or the employee has not yet reached the 30-day mark.
Registration Conditions
Both the employer and the employee must provide their UAE ID cards in order to register in the system, and they must only interact with WPS agents who have been authorized by the Central Bank.
Tough Repercussions for Non-Compliance
To make sure companies follow wage payment laws, the Ministry has put in place stringent monitoring protocols. It underlined that all establishments registered with the Ministry are subject to the WPS and encouraged employers to follow wage payment schedules in order to avoid fines.
On the third and tenth days following the wage due date, notices are delivered to violating establishments to start the monitoring procedure. Restrictions, such as the suspension of fresh work permit issuances, are applied on the seventeenth day if non-compliance persists, and the employer is informed of the cause.
In addition to being subject to field visits and official warnings, establishments with 50 or more employees have their names immediately added to the electronic inspection and monitoring system.
Unless the employment contract stipulates a shorter term, an employer is deemed to be late in paying wages if they are not paid within 15 days of the due date. On request, establishments must also produce documentation of wage payment.
If 80% or more of qualified workers receive their salaries, the employer is considered compliant. As long as any legitimate deductions are recorded, a worker is deemed paid if they receive at least 80% of their agreed-upon compensation.