A new regulatory update was announced on 31 January 2023 by Dubai Multi Commodities Centre (DMCC) where all employees with an active Employment Visa or Personal Identity Card (PIC) must be registered in the Wage Protection System (WPS).
The legislation behind the WPS in the United Arab Emirates (UAE) is the Ministerial Resolution No. 765 of 2010, issued by the Ministry of Human Resources and Emiratisation (MOHRE).
This initiative aims to enable a dynamic economy that guarantees the timely and complete payment of the agreed-upon wages to safeguard the interest of the workers and attract talents across the globe. Currently, WPS registration is applicable to the private sector under the jurisdiction of the MOHRE and Jebel Ali Free Zone Authority (JAFZA). DMCC will be the next jurisdiction enacting the WPS legislation.
Failure to comply with the authority’s requirements will result in penalties ranging from AED 5,000 to AED 50,000.