Wage protection system enters second phase

Wage protection system enters second phase
Updated 13 December 2013

Wage protection system enters second phase

Wage protection system enters second phase

The second phase of the wage protection system comes into effect on Dec.1, Labor Minister Adel Fakeih tweeted Saturday.
The second phase will cover enterprises with over 2,000 workers.
The pay protection bill drafted by the Ministry of Labor has been passed to monitor payment and allowances given to employees by creating and updating a comprehensive national pay database in the private sector.
The bill has come in a bid to protect employees’ rights, as it ensures that employers continue to pay their staff in accordance with the contractual agreement, the Labor Ministry said on its website.
Employers registered with the Ministry of Labor's pay protection system will be monitored for accuracy of information through frequent audit processes, said Abdullah Abu Athnain, deputy labor minister of inspection and work environment development.
The new system would urge employers to prioritize staff pay over other financial commitments and also to create a more productive work environment and comfortable living conditions for employees, he said.
The new system would also serve as evidence in dispute cases filed by workers, he added. It would provide accurate statistics on the size of the labor market in the country and curtail fake employment statistics and illegal migrant workers, he said.
Employers are requested to update their pay protection database every month through the Ministry of Labor website. This would enable the ministry to check companies' updated information against actual payments made to the bank accounts of employees.
Employers are required by law to update employee information in the pay protection system with the following items: name, net pay, employee bank account information, monthly housing allowance and other allowances, deductions, national ID or iqama number, date of transfer, status of transfer and transfer number.
Companies that fail to update data on payment for over three months will face business penalties, including the suspension of their business license.
In this case, employees can ask for sponsorship transfer without the approval of their original sponsor.
The first phase of the pay protection began on Sept.1 for companies with over 3,000 workers and private schools.