Middle East 5

E-payment system for workers in the private sector

Salaries and wages of labourers in the private sector companies will be transferred through banks operating in the UAE on a monthly basis in the context of organizing the affairs of labourers working in these companies.

A Memorandum of Understanding (MoU) in this respect was signed Sunday by H.E. Saqer Ghobash, Minister of Labour (MoL) and H.E. Sultan Bin Nasser Al Suwaidi, Governor of the Central Bank, in a meeting held at the Ministry of Labour in Abu Dhabi.

Al Suwaidi has emphasized that the apex bank values such trend on part of the Ministry of Labour. He added that the Central Bank will instruct all banks operating in the UAE to facilitate such move and open accounts for all companies/establishments, registered with the Ministry, to enable them transfer salaries of their employees electronically via a special system which the Central Bank is developing for this purpose.

According to him, the system will be linked to the Ministry to enable it to obtain monthly reports about companies which fail to pay their employees, whether partially or totally, or those which pay reduced salaries for some or all employees.

On his part, the Minister of Labour emphasized that the transfer of salaries of workers through banks, as is the case with companies of the public sector, comes in the context of the country's attempt to regulate the labour market and provide the appropriate circumstances and environment to facilitate the procedures and regulate the finance of workers' wages in a way that contribute to achieving good results, which, in turn, reflects positively on the companies themselves and the economy in general.

He said :'' The Ministry of Labour will exert all efforts to ensure that companies comply with this plan, hoping they will cooperate immediately in this regard in order to execute such trends with full awareness that this will serve the interests of companies and their works in the first place.

He expressed his appreciation for the role played by the Central Bank and banks operating in the UAE in carrying out the agreement, by putting the public interest of a large group of workers above any other considerations.
/WAM/

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