Wage Protection System is an initiative by the UAE. WPS facilitates employers to pay salaries by electronic transfer. The system, mandatory for all companies registered with the Ministry of Human Resources and Emiratisation ensures that the employees receive full salary on time.
Companies that have not yet adopted WPS will face new penalty as laid down by the recent amendments. The consequences could be rather severe as they have a cascading effect. For instance, if a company employing more than 100 workers delays salary payments, it may lead to Suspension of work permits for one month. Continued delays would result in Suspension of work permit for 60 days thereafter fines will be applicable. The Ministry may also exercise its rights and use the bank guarantee for paying the wages.