The system operates through an electronic platform that facilitates the transfer of wages from employers to employees. It generates electronic files containing salary information, which are then processed by the approved financial institutions for direct salary deposits into employees' bank accounts or prepaid cards.
The WPS enables employees to have secure and timely access to their wages, ensuring their financial stability and well-being. It also provides a mechanism for monitoring and enforcing compliance with labor regulations, as the MOHRE can conduct audits and inspections to verify employers' adherence to the system.
Non-compliance with the WPS can result in penalties for employers, including fines and potential suspension of their ability to sponsor new employees or renew existing work permits.
Overall, the Wages Protection System in the UAE is a significant step towards promoting fair and transparent wage practices, protecting employee rights, and fostering a positive work environment in the private sector.