WPS Update

December 27, 2016

We have received the following Resolution from the Ministry of Labour below:

If you are paying your staff regularly through WPS procedure and paying all staff or at least 80% in total, then this notice will not apply to you.

The below is the fining structure, if you continue to be registered for WPS as a company and are not fully compliant with the below. 

Implementation of Ministerial Resolution No. (739) of 2016 On Wages Protection

The following is an example starting from this months December Salary which is usually paid on the 31st December the proceeding 2 months thereafter - this applies to any month in the year but we are stating from now so you can see what happens and what implications are imposed from non compliance as time progresses.

From the 1st to the 9th Jan you have this extra time (9 days) to make the payment for December Salary - no block from WPS Section

10th Jan if no payment is made - Labour will send SMS to the company mobile number listed on the company's licence, a notice stating 'no quota permits shall be given with effect from the 16th Jan'. This means you will not be allowed to apply for any new employee's.

16th Jan if still no payment is made for the month of December Salary - The Company will be suspended + notice + fine (the fine amount is not mentioned in this official statement from the Ministry of Labour)

**If payment to staff is made before the end of January - suspension will be lifted but fine (no amount mentioned) will still be required to be paid.

If no payment by 1st Feb made by the company for December and now January Salaries (2 months in arrears)

The following procedures shall be administered by WPS Section of Labour Dept:

1. Inform the concerned authorities (we presume DED is one of them) to take all penalties/fine against the company.

2. Extend the suspension period of the company to include the other companies/licences/subsidiaries of both this company and the sponsor.

3. Ban the opening of any new company with the Ministry and that also applies to any new labour/permits for the company.

4. Take the necessary procedures to call on the letter of guarantee (Bank Guarantee will be used to pay salaries).

5. Degrade the category of the firm to category 3. This means higher labour card fees in this category.

6. Enable the employees to move to another employer - NOC to move over to new company without company permission.

If payment is made during the next month from the date of entitlement- Suspension of any new employment applications/quota will continue for a further 2 months - so they can see you will pay regularly and it is not just a one time payment made by the company to open the system.

No payment made after further 60 days ( 4 months of not paying) - Administrative fines (no amount mentioned) shall be imposed on the firm plus implement and continue the above procedures.

** Note: If payment starts and then stops again and is repeated as above, the period of suspension will be doubled and we presume the fines (no amounts mentioned)  doubled as well.