The Ministry of Labor issued implementation deadlines for the Wages Protection System (WPS), which was originally announced in 2017, implemented in 2021, and not strictly enforced until now. Specifically, companies with over 51 employees (classified as medium or large) must implement the WPS for at least 50% of their workforce by November 9, 2023 and for 100% of their workforce by January 9, 2023. Companies with less than 50 employees (classified as small or micro) must implement the WPS for at least 50% of their workforce by January 9, 2024 and for 100% of their workforce by March 9, 2024. The WPS was implemented to ensure the payment of salaries to employees in a timely manner according to the terms and conditions agreed to by the parties in their employment contract. Once the WPS is implemented, salary payments must be disbursed no later than seven days from when they are due, with exceptions for certain cases such as when an employee is on unpaid leave. Employers that fail to comply with the new guidelines are expected to be subject to administrative penalties, including warnings, suspension of labor-related transactions and fines of OMR 50 per case. Affected employers should contact their banks for specific guidance on the salary disbursement process through WPS. Employers are also required to promptly inform the Ministry of Labor of any changes to salaries and ensure that the registered wages accurately reflect the amounts received by the employee.
This alert is for informational purposes only. If you have any questions, please contact the global immigration professional with whom you work at Fragomen or send an email to [email protected].
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