Setting up a business in Abu Dhabi, Dubai, or the wider UAE can be quite demanding. It is vital that you fulfill all legal obligations, especially when it comes to your company’s most valuable resource – your employees.
What Is Wages Protection System (WPS)?
WPS system is an innovative electronic mechanism conducted by both the Ministry of Labor in the UAE and the Central Bank of the UAE. With WPS, the Ministry of Labor can now track whether salaries are being paid on time or not and impose penalties on employers when necessary.
The Rationale Behind WPS
WPS system helps track whether salaries have been paid on time or not in real time, which will allow the ministry of Labor to penalize non-compliant employers immediately. This initiative has contributed to providing labor social protection and safe work environments because it protects the employees’ right to receive their wages on time – especially for low-skilled workers who may be likely subject to illegal and unfair practices.
Consequences of Failing to Join or Adhere to WPS
Companies that do not enroll in the WPS or do not transfer their wages on time are not allowed to renew their employees’ work permits until all outstanding payments have been proven to be settled. If a company’s delayed payment exceeds one month, its right to renew its work permits will be canceled.
How Does ZenHR HRMS Facilitate the Process of Implementing WPS?
ZenHR HRMS is a cloud-based Human Resources Management System designed to serve everyone from SMEs to Enterprise customers in the MENA market. ZenHR is completely localized to the MENA market, including all labor laws, expat regulations, and social security & tax laws.
Read the full ZenHR whitepaper and get all the information you need to ensure a successful WPS implementation at your company.