June 6, 2023
Economy International

UAE Takes Legal Action Against 3,000 Companies for Wages Protection System Violations

UAE Takes Legal Action Against 3,000 Companies for Wages Protection System Violations

The Ministry of Human Resources and Emiratization (MoHRE) in the UAE has sent over 3,000 companies to Public Prosecution for failing to pay salaries through the Wages Protection System (WPS). This system mandates that companies transfer employee salaries electronically to their bank accounts, and it allows the MoHRE to monitor salary payments and take legal action against employers who fail to pay on time.

In 2022, MoHRE inspected more than 612,000 private sector firms and found over 12,000 violations, resulting in substantial fines. These violations included breaking the rules related to employment conditions, safety guidelines, and payment systems. Some employers were also found to be holding official documents of domestic workers unlawfully, while others failed to provide breaks during hot summer days.

Acting Undersecretary for Emiratization Affairs and Assistant Undersecretary for Labor Affairs, Ayesha Belharfia, stated that the ministry has addressed 81% of complaints, while the remaining 19% have been referred to courts. Belharfia emphasized that the MoHRE is committed to protecting the rights of employers and employees, and that the UAE’s reputation as a premier location for living, investing, and working is reinforced by strong regulations that comply with international labor agreements.

The UAE’s efforts to enforce the Wages Protection System and other labor regulations demonstrate its commitment to ensuring fair treatment of employees and employers alike. While the legal actions against these 3,000 companies may be challenging for those involved, they serve as an important reminder of the importance of following the rules and regulations put in place to safeguard the rights of all workers.

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