Wages Protection System -WPS - In UAE

Wages Protection System (WPS) is an electronic salary transfer system that allows institutions to pay workers’ wages via banks, bureaux de change, and financial institutions approved and authorized to provide the service.

The system, developed by the Central Bank of the UAE, allows the Ministry of Labour to create a database that records wage payments in the private sector to guarantee the timely and full payment of agreed-upon wages.

The WPS covers all institutions registered with the Ministry across all sectors and industries and will benefit different categories of labour.

The WPS reflects the UAE's leading position in the region, and will increasingly project the country as a model worth emulating in the following areas:

• Reiterating commitment to protect workers’ wages;

• Providing innovative solutions that help employers safeguard their own interests and reduce the time and effort needed to pay workers' wages;

• Taking serious steps to improve job security in order to strengthen work relationships in the UAE and safeguard the rights of all parties concerned;

• Entrenching transparency and competitiveness;

• Ensuring that the UAE Ministry of Labour is regularly and constantly updated on wages data in the private sector in order to guarantee that employers fulfill their salary obligations;

• Taking protective and proactive measures to reduce labour disputes pertaining to wages.

WPS targets the following parties from the Ministry partners:

• Workers: each and every individual who works in the private sector in return for agreed-upon wages and who has a labour card issued by the Ministry;

• Employers: whoever owns a company or institution registered with the Ministry and hires one or more workers in return for agreed-upon wages;

• Banks: the financial institution which the employer has a bank account with,, that is used to transfer the wages amount through WPS to the appointed agent to distribute to the labours.

• Agent: any bank, bureau de change, or financial institution approved and authorized by the Central Bank of the UAE to offer wages payment services via WPS. The Central Bank of the UAE will issue a regularly updated list showing names of approved and authorized agents.

Joining WPS requires:

1. The company needs to be registered with the Ministry;

2. The company should have a bank account with one of the banks operating in the UAE;

3. The company should enter into contract with any bank, bureau de change or financial institution approved and authorized by the Central Bank of the UAE to provide the service. The two parties shall agree on any service fees and charges.

4. Workers’ wages will be transferred via WPS by the deadlines specified in the Ministerial Resolution No. 788 of 2009.

Deadlines for institutions to start transferring workers' wages via WPS

Number of workers* Period granted Deadline

100 and above  - 3 months (starting September 1) 30 November 2009

15 to 99 workers - 6 months (starting September 1) 28 February 2010

Less than 15 - 9 months (starting September 1) 31 May 2010

*The periods granted to comply with the new system and start transferring workers' wages via WPS will not apply to institutions which were already denied new work permits when the Ministerial Resolution 788 for 2009 was issued for failing to pay workers' wages on time, nor to institutions which failed to pay workers' wages for one month or more after the Ministerial Resolution was issued.

5. The institution will have to transfer workers' wages via WPS within two weeks of their due date, or on the dates specified in the work contract if wages are paid more frequently than monthly.

6. The employer will be responsible for all expenses incurred upon joining WPS, including bank fees, service provider charges, and all other costs. Employers are not allowed to share any costs with workers' by any means, including deducting from their wages, directly or indirectly.

The mechanism to apply for WPS is as below:

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.

Consequences of failing to join WPS

• Institutions failing to transfer workers' wages by the deadlines specified above will be denied the right to have new work permits. This ban will only be lifted in the month following the transfer of workers' wages in full.

 Institutions that delay wages’ payment more than one month of the due date will be denied the right to have new work permits, along with all institutions owned by the owner of the violating institution, and to refer all those responsible for the violation to the court, in accordance with Ministerial Resolution No. 788 of 2009.

Sponsering Your Parents - UAE visa Rules

sponsor your parents, and/or parents-in-law, for a residence visa in Dubai and the UAE. Note that a residence visa is not the same as a family UAE visit visa. The residence visa process involves 2 steps. First obtaining an entry permit, second step is to convert entry permit to a residence visa after parents arrive in the UAE. New UAE visa rules from July 2008 have the following requirements and restrictions for sponsoring parents.
Both mother and father must be sponsored, unless one is dead, or they are divorced.
You should be the only provider supporting them (if they live with other children in another country then you'll have a tough job proving that).
Minimum salary for sponsor is AED 6000 per month if in company provided accommodation, or AED 7000 month if paying for own accommodation.
Medical insurance for parents is required.
Your accommodation should be at least 2 bedrooms.
AED 5000 deposit for each parent requried.
Residence visa is limited to one year at a time (renewable).
Your sponsorship is only for a residence visa. Your parents are not allowed to work. But don't tell them that otherwise they'll never do the dishes.
Documents required for sponsoring parents residence visa
Your passport with residence visa.
Copy of your parents passport for entry permit, original passport for residence visa.
Photograph of each parent (one specified by immigration department but bring a spare).
Letter attested by your embassy to verify your relationship, and that you are the sole provider.
Salary certificate, or labour contract (salary needs to be specified).
Tenancy contract, attested by the Dubai Land Department in Dubai. If the number of bedrooms is not stated, then you'll need a letter from your landlord stating the number of bedrooms. This might not apply to professional employees on high salaries (unconfirmed).
Application form - get this at the typing center when you apply.
Cost of parents entry permit is AED 110 (add 100 dhs for urgent applications) and typing center fees - should be less than 50 dhs.
Cost of parents residence visa is AED 110 per year (add 100 dhs for urgent applications), Empost fees (10 dhs?), and typing center fee.
Procedure to sponsor parents for UAE residence visa
Visit the Naturalization and Residence Department of the emirate which issued you your residence visa e.g. Dubai NRD. If you live and/or work in a different emirate, you could try there - bring labour card and/or tenancy contract to prove it - but don't be surprised if you get shooed away.
Bring all documents to the DNRD and submit them. An Approval Committee will decide whether or not you will be allowed to sponsor your parents (takes about 2 weeks). If yes then go to the typing center with the approval letter and your documents to fill in the visa application. Pay your fees and they'll fill in the application form. Take the application form back to the DNRD (ask the typing center for directions). If you've paid urgent processing fees, you should be issued with an entry permit (entry visa) for your parents while you wait, otherwise it should be ready in a couple of days.
Send the entry permit or a copy to your parents. If you send the copy, you'll need to deposit the original at the airport a few hours before they arrive. After your parents arrive, take them, or send them, to a medical clinic to do the blood test and x-ray required of all UAE expat residents.
Bring the entry permits and original passports, the deposit receipt, another 3 photos, and all previous documentation (or whatever's left of it) back to the typing center of the immigration department to convert their entry permit to a residence visa. A second 5000 dhs deposit is not required. You need to do this within 60 days of their arrival (DNRD information) but that sounds generous. Allow 30 days maximum to avoid surprise overstaying fines.
Your parents passports should be sent back within a week or two with the new residence visa pasted in, sooner if you pay the urgent fees. If your parents arrive in the UAE on another entry permit of some sort - UAE tourist visa, visit visa on arrival, or sponsored visit visa, you might be able to transfer them to a residence visa but you'll still need all the other documentation. It is not necessary to depart and re-enter the UAE when changing entry permit to residence visa.
Renewal of parents residence visa
Visit the typing center at the immigration department with your passport, your parents passports, deposit receipt, and fees (same as application fees the first time). Get the form filled in, head over to the residency department, hand in all the documents and wait a week or two.

Sponsoring Parents in UAE - Ministry denies visa policy has changed

The Ministry of Interior has denied rumours that it has stopped issuing visas to the immediate relatives of expatriate residents. Major General Nasser Al Awadi Al Menhali, Director-General of the Naturalisation and Residency Department, told that visas are still being issued to immediate family members, and especially to parents.

He added that a husband has the right to sponsor his wife, parents and in-laws. Wives in turn have the right to sponsor their husbands, parents and in-laws. Parents have the right to sponsor their children if they are under the age of 21. The ministry takes into consideration humanitarian and social imperatives and sometimes issues visas to children above the age of 21 who want to visit their families or continue their education.

A local Arabic-language newspaper reported yesterday that the Naturalisation and Residency Department had stopped issuing visas to parents of residents, but continued to issue them to husbands, wives and children. The report prompted panicked expatriates to call newspapers and residency department offices.

Al Menhali said there had been no change in the UAE's naturalisation and residency laws. Applicants are required to deposit a guarantee of Dh5,000, in addition to the visa application fee

Labour Ministry issues fresh warning to dormant firms

The Ministry of Labour has warned again that it would not tolerate violations by dormant companies which fail to report the closure of any of their units, leading to loss of jobs by their workers, Alkhaleej newspaper reported .Companies violating existing rules would be fined Dh50,000 for each sacked worker while all establishments sponsored by the owner of the abusing firm would be blacklisted by the government, the paper said.

The Ministry issued the warning during an open meeting organised by the Ministry of Labour on Monday for employees and private sector representative.

Officials said the Ministry had received several applications from dormant or shut firms reporting their new status and asking for permission to transfer the visas of labourers of such firms to other establishments belonging to the same owner.

“In case employers or workers do not inform the Ministry that such an institution no longer exists and that they are not employed any more, then the Ministry will transfer their visas to other establishment belonging to the employers without prior request or approval by the owners,” the paper quoted Mohammed Jameel, Director of the Guidance Section at the Ministry, as saying.He said workers laid off as a result of a shut firm must inform the Ministry within three months of the date of closure.“Should they do so more than three months after the closure, then the Ministry will consider them as jobless and violators of the residence law…in this case, we will cancel their visas and give them a work ban for one year.”

Employment ban and ban lifting charges in UAE

The Ministry of Interior used to put an automatic six-month ban on expatriates if they cancelled their employment / residence visas or left their jobs. The decision to lift the immigration ban that came into effect on 21 st August 2005 has brought some relief to expatriate community. It would enable the people to return to UAE on a visit visa even if they got a labour ban. The main advantage of the new decision is that people can still come back and visit their friends and relatives. But expatriates who violated the country’s Immigration and Residence Laws would still face the entry ban.

Article 6 of the Cabinet Decree No. 18 of 2005 annulled Decree No. 30 of 2001 pertaining to the entry ban. The Cabinet also authorized the Ministry of Labour and Social Affairs to put together necessary regulations to implement the decision on the ban. Subsequently, iris scanning has also been stopped. Besides, the names of expatriates with cancelled visas will no longer be on the administrative lists nor will their passports be stamped with the ban. The ban to enter the UAE will only be applicable on expatriates who violate laws governing the entry and residence of foreigners. Such violators would face the entry ban administratively for a multitude of reasons and in line with existing laws and regulations.

Domestic help have been excluded ‘temporarily’ from the new decision and their case will undergo further scrutiny by the authorities. But, the Ministry of Labour and Social Affairs will not issue a new work permit to workers whose visas have been cancelled unless at least six months elapse after the cancellation date of the worker’s labour card. The decision came in Article No. 11 of a Ministerial Order Decision No. 826 issued on 11.9.2005 by the UAE Minister of Labour and Social Affairs. The six-month waiting period does not apply to government departments or free zones.

Applying for new work permit while banned

Khaleej Times reported 29 September 2010 that the Ministry of Labour (MOL) said that employers can start processing work permits for banned employees before the ban period is over to facilitate quicker issue of labour cards; it sounds a bit strange since our understanding was that the MOL automatically blocked any new applications until after the ban period had expired. Jassim Jamil, acting Director General, Work Relations Department at the MOL was quoted as saying "This system demonstrates the MoL’s commitment to grant the blacklisted worker the opportunity to search for another job. Likewise, the employer wishing to hire him can initiate a transaction for issuing a new work permit before the end of the ban duration to save time,”

1. Immigration Ban

An immigration ban means you cannot enter the UAE, whether as a visitor or for residency. Other bans can arise if you have been convicted of a criminal offence while in the UAE. Common offences that many expats get into trouble with are bad debts, bounced checks, drinking and driving, drunk in public, inappropriate relationships. Of course, more severe offences such as theft, violence, rape, murder etc will also result in an immigration ban but not so many expats indulge in these activities, and those that do are not usually so surprised to receive a ban.

An immigration ban can also arise if you have broken the rules related to immigration for example entering the country illegally, working without a work permit, absconding (leaving your job without informing your sponsor / employer), overstaying (this last one is not so likely to be a problem, just expensive when you get your overstaying fine).

Criminal offences usually result in a permanent ban and this is monitored via eye-scanning equipment at airports, so losing your passport and getting a new one won't get you back in to the country.

2. Employment Ban

An employment ban, labour ban, work permit ban are all different terms for the same thing i.e. you are not allowed to work in the UAE for a certain period of time.Note that this is an automatic ban on providing a work permit or labour card imposed by the Ministry of Labour (MOL).

Nothing is stamped in your passport but when a new employer hands in an application to the MOL, it will automatically be rejected if a ban is on your computer file. A 6 month labour ban does not affect permission to visit the UAE - you can still enter on a visit visa or tourist visa.

If you have a 1 year or permanent labor ban you might also be restricted from visiting the UAE - check with the immigration department first. A report in the Khaleej Times on 26 August 2010 offered some clarification, saying that those with a permanent work ban in the UAE could still enter on a visit visa - An expat worker who has a permanent ban from working in the country is eligible only for a visit visa, an official at the Ministry of Labour (MoL) said on weekly Open Day at the ministry in Abu Dhabi.

Ban lifting fee

There are some reports (in 2008-2009) that you may be able to pay a ban lifting fee of about 5000-6000 dhs. Other reports and comments indicate it is possible to lift a ban on payment of AED 500 per month of remaining contract duration if leaving before the end of a limited period contract. Official confirmation of a ban lifting fee not found so it could be variable depending on profession, nationality, company, mood of the official you're dealing with, wasta, which emirate. Although the MOL website does still have a document from 2007 outlining the fees and categories of qualifications that are exempt from a ban or can get a ban lifted. It seems to be related to previous ban information but might still apply. Don't count on it but if you have no other choice, it's worth trying.

No ban on sponsor transfer

It may be possible to avoid a ban, or lift a ban by paying a fee, if you transfer from one sponsor to another. This is different from cancelling your residence visa and work permit, then applying for a new visa and labour card. A transfer of your sponsorship will at least need a No Objection Certificate (NOC), possibly payment of a ban lifting fee, and might be restricted to certain occupations. Check with the labour department in the emirate you are working in.

1 year ban

A one year labour ban for Dubai, Abu Dhabi, and the rest of the UAE will usually be imposed under the following conditions

• expatriate workers leaving government jobs

• expatriate workers who break the terms of their labour contract and/or the labour law

• expats who lose a case with the UAE labour department against their employer, if they were on a temporary work permit because they had filed a complaint with the labour department (according to a Gulf News report 02 August 2009 and other follow-up media reports) possibly against workers who leave their job within one year of starting (at employer's request)?

6 month ban

A six month ban will be imposed on everyone automatically, unless they cop a one year ban, or fit into one of the exceptions below

No labour ban will be imposed on anyone in one of the following categories

• UAE citizens are not subject to any labour ban (or immigration ban for that matter)

• Expatriate workers moving to a government job will not receive a ban (don't confuse this with workers leaving a government job - they get a double whammy)

• Oil company employees

• Expat workers moving to another employer within the same free trade zone (not to a different free trade zone)

• Expats who have completed a fixed term contract and have given proper notice of not renewing it

• Expats who have completed 1 year of an unlimited contract AND get a No Objection Certificate (NOC) from the current employer. It may be a requirement that the new job has the same job title as the old job.

• Expats who are sponsored by their spouse for a residence visa (unless they breach the labour law in some way that brings down a ban).

• Expats who have worked for a company for more than 3 years on an unlimited contract? Unconfirmed. A Gulf News report 01 March 2009 stated that "The ban does not apply if the person has been working in the company for more than three years." Another Gulf News report ("Ask The Law" 12 February 2010) had a reply from Advocate Mohammad Ebrahim Al Shaiba of Al Bahar Advocates and Legal Consultants who said "... if his contract is for an unlimited period, he shall work with the employer for three years, then he may transfer to a new sponsor without the need to obtain a No Objection Certificate from the existing sponsor. This is the current applicable law in the Ministry of Labour..."

Where many expats get tripped up is when they work for more than a year but do not complete the full period of a fixed term contract. They can expect to get a ban even if the company provides them with an NOC.

Exceptions can be made but require a trip to the Ministry of Labour (MOL) to explain your situation and give them a good reason why the ban should not be imposed. A company going bankrupt, or the owner of the company doing a runner or dying are examples of what might prompt some leeway from the MOL. An employee getting into a fight with his or her boss, or not performing satisfactorily, is unlikely to be viewed with any sympathy, even if they claim their boss was being unfair.

If your boss really is being unfair or you have a legitimate complaint, your first step should be to file a complaint with the UAE Labour Department so that there is a documented record.

Other exemptions from employment ban

According to Article 63 of the "General Provision for the Entry Permits and Visas" legal document (as seen on DNRD website), "no new Entry Permit or Visa may be issued for employment except after the elapse of six months from the date of the last departure from the territories of the State", but the following categories of workers are exempted:

• Engineers

• Doctors, Pharmacists and Male Nurses

• Agricultural Guides

• Qualified Accountants and Auditors

• Administrative Employees holding university degrees

• Technicians operating on scientific, electronic instruments and laboratories

• Drivers licensed to drive heavy vehicles and buses, in case the transfer of sponsorship is to a similar party

• Workers in private oil companies when the transfer is between such companies

Unknown if this is current information (DNRD document is undated). Last checked 01 March 2009 but document appears to be more than a year old, so may have been superseded by changes to UAE visa rules in 2008.

Ban lifting fees in UAE

The UAE MOL website (as of September 2010) lists "Transfer of Sponsorship" fees information, with additional fees payable for workers who have not completed their contracts but wish to change jobs (of about AED 3,000-5,000). It's not clear if these fees are applicable only if the worker obtains a No Objection Certificate (NOC) from employer.

Fees are the same those that were implemented during 2006-2008 when workers were permitted to transfer to another employer. As usual in the UAE, nothing is clear. If you want to know about getting a ban, and whether or not you can pay a ban lifting fee, ask the UAE Ministry of Labour helpline. Then ask again the next day to see if you get the same answer.