The Labor Ministry has warned that it would deny services to firms failing to implement the Wage Protection System.

The warning came Tuesday, days after the ministry launched the fifth phase of the program. From Feb. 1, all firms with 320 or more employees have to declare salary payments to their workers.

“The new phase will cover 1,195 firms,” said Abdullah Abuthnain, deputy minister for inspection and development, adding that the program would enable the ministry to follow the performance of the labor market.

“It will also enable us to make sure that all employees in the private sector are paid their salaries on time according to their work contracts and determine the salaries paid for different professions,” he said.

Abuthnain warned that firms failing to implement the program for two months after the due date would be denied all ministry services, except the issue and renewal of work permits.

“If a company fails to do it for three months, it will not get any service from the ministry and its workers will be allowed to transfer to other firms without their employers’ consent,” he said.

The program was first launched by the ministry in August 2013 to set up a database containing the latest information about salary payments for all employees in the private sector. Under the program, private firms must submit to the ministry the lists of salary payments made through local banks.

“The program has played a big role in protecting the rights of workers and reduced labor disputes,” the official said, adding that it also helped to boost productivity, and ensure the ministry gathers correct data about the labor market.

Abuthnain said the program’s sixth phase would be implemented on April 1 for companies that have 240 workers or more, while the seventh phase on June 1 would apply to firms with 170 workers or more. “Companies can join the program on an experimental basis before the due date.” He urged firms to visit the ministry’s website to get more information.