UAE Labour Minister HE Saqr Ghobash has hailed the priority given to the Wage Protection System (WPS) at local and international levels even before it becomes into effect as per the ministerial resolution number 788 of year 2009.
He cited the response of many firms to register in the WPS even before the system becomes officially operational with effect from this month.
Number of workers who received salaries through WPS increased from 28, 000 in June to 100, 000 during July and August. The WPS will by officially operational with the salaries of September, which are due in early October in accordance with the ministerial decision. The UAE Central Bank has issued 35 banks out of 54 operating in the country, as well as 15 exchange offices licenses for WPS service early September.
"The response to the WPS reflects consciousness about the system, particularly after the visit of Vice President and Prime Minister of UAE and Ruler of Dubai His Highness Sheikh Mohammed bin Rashid Al Maktoum, and his support to this innovative initiative in line with the Cabinet decision number 1/133 of year 2007, on obliging firms to transfer salaries through the banks in accordance with the directives of the Federal government to enhance services rendered to employees to achieve e-government system," Ghobash said.
The Labour minister stressed the significance of the private sector as a basic partner in building a country capable of boosting its position in the world map, focusing on positive merits, which will be tangibly felt by employers through transfer of salaries through WPS, among others, save time, effort, money and raising of labour productivity and allegiance. He deemed the WPS as the best system since it will spare employers and employees keep huge cash in places of work.
"We were keen to register first in the WPS the companies, which pay salaries on time", Ghobash said, indicating that the WPS was introduced following deep lengthy talks among the competent authorities, taking in account the needs of all targeted categories.
He underlined that "it is our duty as an executive and control authority to implement laws and systems issued by the political leadership and the Council of Ministers, pertaining to protection of rights of both production parties, as well as inventing sets of solutions to boost all sides to exercise their positive roles in the community and to know their rights and shoulder their responsibilities.
Ghobash noted that he has issued the directives to honour and provide all facilities to the firms and financial institutions, which initiated to support the WPS and registered even before the system becomes officially operational.
He concluded that the WPS has been welcomed by the regional and international bodies, notably, the International Labour Organisation (ILO), which addressed the ministry that it would dispatch an international expert to study the details of this innovative mechanism and assess chances of benefiting from the system at international level. Ghobash also noted that a number of sisterly and friendly countries have expressed their interest to study the system and examine chances of implementing it.
Earlier Sheikh Mohammed bin Rashid Al Maktoum, lauded the WPS, describing it as a "step towards right direction to protect rights of workers and establish trust between employers and employees", hoping all sides would cooperate to boost reputation of the UAE abroad through safeguarding its interests and the interests of workers and employers as well.
Sheikh Mohammed underscored that the implementation of the WPS "is a national and humanitarian responsibility that requires solidarity among competent authorities to make it a success".
WPS is an electronic initiative to safeguard payment of workers’ wages via transfers through selected financial institutions that are authorised and regulated by the government. The system was developed by the central bank to support work of the ministry through setting up of the database on payment of workers’ salaries by the private sector. The ministry would ensure that the firms pay salaries on time. Such a procedure will help it take speedy measures to curb disputes related to wages.
