Checking WPS Status in Dubai
As an employer or employee, you probably want to check the WPS status of the company. This status check helps you whether a company complies with Wage Protection System-WPS or not. Prospr understands how important it is for employers and employees of the private sector to perform this check from time to time. Thereby, we have created a comprehensive guide on this matter. Before we explain how to check WPS status of a company step-by-step, we would like you to understand:
What is WPS Salary in UAE?
WPS-Wage Protection System was introduced in 2009 by MOHRE, the Ministry of Human Resources and Emiratisation and the Central bank of UAE. The purpose of introducing this system in the country is to make sure that employers pay workers agreed-upon wages and salary on time or in other words stay compliant to employment contracts. Most of the rules and regulations set by WPS are basically designed to protect employees and explain what employers should pay and exactly when. The recent reforms introduced with the publication of Ministerial Resolution No. 43, state clearly that:
- New employee must be integrated into the WPS system within 30 days from the day of the employee.
- If employee didn’t agree on the pay day, employer still make wages or salary payment to employee once a month – at lease
- Payment become due on a day after the payday both employee and employer agreed upon
- Payment becomes late 15 days after pay day
- Employer must pay at least 90 percent of its worker in a particular month
- Every employee must receive 80 percent of their gross pay at least.
Private sector employers need to follow rules set by MOHRE. This rule is applicable on the employers of the private sector in Dubai, Abu Dhabi, and other emirates including Jebel Ali Free Zone.
Read a complete guide about how to setup a company in Dubai Free Zone?
Now if you have started a new business in Dubai and planning to hire employee, it’s essential for you to join this system as an employer and later integrate your employees with this system. You will select a WPS agent, a financial institutions in the UAE. Open an account with this WPS agent. Now this agent will be responsible for forwarding salaries and wages of your employee to their bank accounts. Your company will submit SIF- Salary Information File that will contain information of your employees. The WPS agent will get a file from your side and take care of the disbursement of funds to your employees.
Don’t forget to read about how to check company status in Dubai?
How to check the WPS status of a company
Employers need to check the WPS status to ensure that their status is active and there hasn’t been any ban on the status or any violation. On the flip side, employees must check the WPS status of a company they are joining to ensure that company is following the laws, which are designed to protect their salary and wages. If a company WPS status is active, it gives you guarantee and surety that company is paying its existing employee as per laws.
Here are some steps you will take to check the WPS status of a company:
- Visit the official website of MOHRE
- Click on services section from the home page
- Select ‘New Enquiry services” from the drop down menu
- You will be redirected to a page where you need to pick a service from the available options.
- Click on the company information from the drop down
- Provide details of company such as its number
- Platform will provide the WPS status including other company information
If you don’t visit the official website, other ways to check the status is to contact the customer service of MOHRE through email, phone call, online chat, WhatsApp, etc.
Also learn about How to do online company registration in Dubai
Why does MOHRE place a ban on WPS status of the company?
If you check the company WPS status, and find out that it has been banned by MOHRE, you wonder why it’s like that. Well, if a company violates terms and rules set by MOHRE and WPS, then it may needs to face some penalties or fines or ban. Here is a list of some non-compliance activities and their consequences:
Non-payment, 17the day after due date
If a company doesn’t make payment in this scenario, MOHRE will suspend issuance of new work permits so the company doesn’t hire more workers. They will schedule an inspection visit to employers with 50 workers or above. At this point, employer will receive warnings about their non-compliance.
Non-payment, 30 days after the due date
In that scenario, MOHRE will join hands with federal authorities, the Public Prosecution Office and local authorities to initiate legal action against a company with 500 workers or more. It’s because the company is considered a high risk establishment.
Non-payment, 45 days after the due date
MOHRE will treat companies with less than 500 workers exactly the same as they treatment companies with more than 500 workers if they go default after 30 days.
Non-payment, 60 days after the due date
MOHRE will suspend issuance of new work permit for the companies owned by this defaulted company.
Repeated violation
If a company doesn’t make payment of salary and wages again and again, The MOHRE will schedule inspection visits to issue warnings and impose administrative fines in line with Cabinet Resolution No. 21 of 2020. Besides, they will downgrade the company from Category C or the third tier.
Failure to pay a worker’s wage for more than 3 consecutive months
MOHRE will suspend issuance of work permits and send electronic notification to the company. They will schedule an inspection visit once it is six months from the date of non-payment.
If you are a current employee of a company, check the WPS status and decide whether you want to stay or leave a company. A potential employee should skip a job offer from a company from Tier C as it won’t be a good company to work with.
4. How to remove WPS ban on your company?
It’s always suggested for employers to avoid WPS ban by paying employees on time. You can rely on a digital payroll software to ensure that you don’t delay salary and wages of your employee. Good practices will help you avoid the ban that will impact your company’s stability and reputation in the long run.
In case your WPS status is ban, it’s how you can lift this ban:
- The first step is to pay your registered workers, no matter where they are (home or abroad). Release their salary and wages or whatever you owe them
- Next you need to contact MOHRE’s technical support and give them the proof of the payment. After the review, your ban will be lifted.
What is the WPS statement in UAE?
It is a detailed salary document that provides a detailed record of an employee’s salary such as deductions, net salary and gross salary. This statement is issued by WPS to ensure that a standard format of salary document is there to stay compliant with legal standards.
How to remove WPS block in UAE?
You need to immediately contact MOHRE to remove the WPS status block for your company. You can contact them directly on their official website or by sending an email at ask@MoHRE.gov.ae or by calling them on 600590000. You must understand why you have been blocked and ask them to guide you how to remove the WPS block.
What is WPS salary?
It is an electronic salary transfer system designed to ensure that employees get wages and salary on time and accurately. WPS has a database where employee upload the salary of their employees for MOHRE
Wrap up
Finally, you have got a clear picture of how to check WPS status of the company. This status should stay active and doesn’t have a ban on it. If you want to prevent the ban, stay compliant with rules and regulations set by MOHRE and the Central bank of the UAE. If you default in the payment of wages and salaries, it will ban you from issuing a new working visa and when you do nothing about it, then it may lead to a legal action against your company. You can avoid such penalties and consequences by simply following the rules and regulations.
Do you need help with company formation in UAE? Prospr’s business consultants are always there. We help you setup a company and understand all the rules and regulation you need to follow to prevent legal actions, fines, and penalties in the UAE- send us inquiries on hello@Prospr.ae