ABU DHABI // Nearly 50,000 companies have still not signed up to a payroll system designed to guarantee employees' wages, almost a year after the deadline.
Of the 250,000 firms registered at the Ministry of Labour, 202,994 have joined the Wages Protection System (WPS), launched in September 2009 to ensure all employees receive their salaries on time, in full, through a bank.
More than 50,000 companies have signed up in the past year. Now the ministry is pursuing the remaining employers through the courts.
Muhsin Alnasi, director of the programme, said officials were visiting the companies to find out why they had not signed up.
When the programme started, many companies said they had only a couple of employees so it made sense to pay them in person rather than through a bank. Mr Alnasi said such factors were being taken into account.
"Some, after inspections, were given exemptions after we made sure that the few workers the sponsor had were being paid on time," he said. "The majority of these sponsors have up to three workers, and with such a small number many prefer to pay them by hand."
When the system was launched, businesses were given up to six months to sign up, with big companies having to register first. Some said they had to give their workers special training to use ATMs, as many were unable to read English or Arabic.
Now, companies that have still not joined are being fined, as are those that fail to pay staff. After 15 days of not paying any employee, the company moves from the work permit "green" zone to "orange" - meaning that it is under observation.
At that point, the ministry contacts the owner to find out why payment is late. Officials also make visits.
If the owner exceeds 60 days without paying workers, the case is sent to the labour court and the owner is subject to a Dh10,000 fine for each unpaid worker, up to Dh5 million. The owner is barred from leaving the country and the company is prevented from hiring new staff.
"Umm Shreif", an Emirati company owner, complained this year to the undersecretary of the ministry that she had been stopped by immigration officials at Dubai International Airport because she had not paid her staff for two months.
"They were on holiday, so how can I pay them?" she said. She was told she should have paid them in advance.
In another case, a company owner absconded, leaving 850 workers stuck in Al Ain. The ministry waived the usual restrictions on switching jobs and helped 90 per cent of them to find new employment, and the others had their airfares paid to leave the country.
"Without the WPS, then we would have not known about this case, and wouldn't have been able to help the workers," a ministry spokesperson said.
osalem@thenational.ae
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AGL AWARDS
Golden Ball - best Emirati player: Khalfan Mubarak (Al Jazira)
Golden Ball - best foreign player: Igor Coronado (Sharjah)
Golden Glove - best goalkeeper: Adel Al Hosani (Sharjah)
Best Coach - the leader: Abdulaziz Al Anbari (Sharjah)
Fans' Player of the Year: Driss Fetouhi (Dibba)
Golden Boy - best young player: Ali Saleh (Al Wasl)
Best Fans of the Year: Sharjah
Goal of the Year: Michael Ortega (Baniyas)
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At a glance
Global events: Much of the UK’s economic woes were blamed on “increased global uncertainty”, which can be interpreted as the economic impact of the Ukraine war and the uncertainty over Donald Trump’s tariffs.
Growth forecasts: Cut for 2025 from 2 per cent to 1 per cent. The OBR watchdog also estimated inflation will average 3.2 per cent this year
Welfare: Universal credit health element cut by 50 per cent and frozen for new claimants, building on cuts to the disability and incapacity bill set out earlier this month
Spending cuts: Overall day-to day-spending across government cut by £6.1bn in 2029-30
Tax evasion: Steps to crack down on tax evasion to raise “£6.5bn per year” for the public purse
Defence: New high-tech weaponry, upgrading HM Naval Base in Portsmouth
Housing: Housebuilding to reach its highest in 40 years, with planning reforms helping generate an extra £3.4bn for public finances
AL%20BOOM
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Key facilities
- Olympic-size swimming pool with a split bulkhead for multi-use configurations, including water polo and 50m/25m training lanes
- Premier League-standard football pitch
- 400m Olympic running track
- NBA-spec basketball court with auditorium
- 600-seat auditorium
- Spaces for historical and cultural exploration
- An elevated football field that doubles as a helipad
- Specialist robotics and science laboratories
- AR and VR-enabled learning centres
- Disruption Lab and Research Centre for developing entrepreneurial skills
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%3Cp%3E%3Cstrong%3ECompany%20name%3A%3C%2Fstrong%3E%20Alaan%3Cbr%3E%3Cstrong%3EStarted%3A%3C%2Fstrong%3E%202021%3Cbr%3E%3Cstrong%3EBased%3A%3C%2Fstrong%3E%20Dubai%3Cbr%3E%3Cstrong%3EFounders%3A%3C%2Fstrong%3E%20Parthi%20Duraisamy%20and%20Karun%20Kurien%3Cbr%3E%3Cstrong%3ESector%3A%3C%2Fstrong%3E%20FinTech%3Cbr%3E%3Cstrong%3EInvestment%20stage%3A%3C%2Fstrong%3E%20%247%20million%20raised%20in%20total%20%E2%80%94%20%242.5%20million%20in%20a%20seed%20round%20and%20%244.5%20million%20in%20a%20pre-series%20A%20round%3Cbr%3E%3Cbr%3E%3C%2Fp%3E%0A
Real estate tokenisation project
Dubai launched the pilot phase of its real estate tokenisation project last month.
The initiative focuses on converting real estate assets into digital tokens recorded on blockchain technology and helps in streamlining the process of buying, selling and investing, the Dubai Land Department said.
Dubai’s real estate tokenisation market is projected to reach Dh60 billion ($16.33 billion) by 2033, representing 7 per cent of the emirate’s total property transactions, according to the DLD.
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Skewed figures
In the village of Mevagissey in southwest England the housing stock has doubled in the last century while the number of residents is half the historic high. The village's Neighbourhood Development Plan states that 26% of homes are holiday retreats. Prices are high, averaging around £300,000, £50,000 more than the Cornish average of £250,000. The local average wage is £15,458.
US tops drug cost charts
The study of 13 essential drugs showed costs in the United States were about 300 per cent higher than the global average, followed by Germany at 126 per cent and 122 per cent in the UAE.
Thailand, Kenya and Malaysia were rated as nations with the lowest costs, about 90 per cent cheaper.
In the case of insulin, diabetic patients in the US paid five and a half times the global average, while in the UAE the costs are about 50 per cent higher than the median price of branded and generic drugs.
Some of the costliest drugs worldwide include Lipitor for high cholesterol.
The study’s price index placed the US at an exorbitant 2,170 per cent higher for Lipitor than the average global price and the UAE at the eighth spot globally with costs 252 per cent higher.
High blood pressure medication Zestril was also more than 2,680 per cent higher in the US and the UAE price was 187 per cent higher than the global price.
Our legal consultant
Name: Hassan Mohsen Elhais
Position: legal consultant with Al Rowaad Advocates and Legal Consultants.