MAV_DXB

Hi all,

I was wondering if someone might be able to help me understand the WPS?

I've had a search around, but I'm still a little confused. This is from the Ministry of Labour:

The WPS applying mechanism is as below:

• The company shall open an account with one of the banks operating in
the country, in case it doesn’t have one upon joining the WPS system;
• The company shall enter into contract with a WPS agent that is
approved and authorized by the Central Bank of the UAE to provide this
service, be it a bank, bureau de change , or a financial institution;
• The employer shall issue instructions to its bank to transfer wages to
workers. Instructions shall be accompanied by a detailed wages list and
a copy of the list shall be sent to the agent.
• The WPS will send workers' details and wages as well as the salary
transfer instructions electronically to the Central Bank of the UAE, who
will then forward those details to the Ministry of Labour database in
order to make sure that the details received correspond with those
registered with the Ministry;
• The WPS will send the approved information to the appointed agent in
order to start paying the wages.

Why I'm confused - of the above points, the third point seems to indicate that the employer instructs the bank to make the payments.

The 4th point that the WPS (the 'agent') will send details to the Central Bank (where did they get this information?)

... and finally the last point, the WPS (is this the agent or Central Bank) will send approved information to the agent to start paying wages - but haven't these already been started via point 3?


Many thanks
M.

lionheart

Desite WPS being the law, I don't know too many small companies that have yet implemented the system, which stinks of Big Brother to me.

Meow

Maybe, but there are numerous companies who pay their employees late, often several month late, and this system is designed to ensure that people are paid on time.

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Bahtatboy

Despite the apparent complexity, it seems to work ok in practice. We haven't done in yet, but its on our hit list for this year. One problem is finding a bank which can open and run an account for lower-paid workers which doesn't cost (or doesn't cost much)--at the bottom of the scale, AED100 pcm in charges is a lot (and for Millhouse, too, no doubt).

If it cuts out late payment of wages its a necessary pain. However, since most of the offenders are local companies, I just wonder what level of enforcement will be made.

Millhouse

too right, I refuse to pay any banking fees.