The number of workers receiving wages through the Wages Protection System (WPS) in the UAE has now risen to over 1.5 million, according to the latest statistics released by the UAE Ministry of Labour.

This includes 1.2 million workers targeted during the first phase of the system, which began last September, the ministry said in a statement.

WPS is an initiative to safeguard payment of workers' wages via transfers through selected financial institutions that will be authorised as well as regulated by the government.

The statistics showed that more than 3,000 firms had converted their workers' wages through WPS out of 4,100 targeted companies during the first phase. The total number of registered firms has surged to over 9,000, the ministry added.

According to the ministry, the numbers of banks licensed to provide the service by the UAE Central Bank have risen to 53, the number of foreign exchange firms have soared to 22 besides four other companies providing the service.

Saqr Gobash, UAE Minister of Labour, said the ministry was satisfied with the performance of the system.

He stressed that the results achieved so far reflected the right direction of the ministry, which 'aims to regulate the labour market and provide a safe and effective working environment through the creation of innovative solutions to ensure the rights of workers and take into account the interests of the owners at the same time'.

Gobash called upon those firms that have not yet registered in the system to expedite the transfer of their worker's wages through WPS before the deadline.

He disclosed that 800 companies had been suspended for failing to transfer workers' wages through WPS during the first phase. These firms have been banned from hiring new workers, he added.

'The Ministry has agreed to extend the deadline for 300 firms who earlier found delayed the transfer of wages within the dates specified, after obtaining concrete evidences that they have given their workers' wages through traditional ways,' said Gobash.

This initiative greatly enhances the Ministry of Labour's ability to implement preventive measures to reduce labour disputes pertaining to wages and offer solutions that will guard workers and employers against keeping large amount of cash at work places, the minister added.-TradeArabia News Service