Protection system

wage protection system aims to preserve the rights of employers and workers | THE DAILY TRIBUNE

TDT | Manama

The Daily Tribune – www.newsofbahrain.com

The Labor Market Regulatory Authority (LMRA) is working on the gradual implementation of the wage protection system, which plays a key role in safeguarding the rights of employers and workers.

This was confirmed by the Director General of LMRA, Jamal Abdulaziz Al Alawi.

The first phase was launched last May and covered employers with more than 500 workers, while the second phase was launched on September 1 for employers with 50 to 499 workers.

The third phase will be launched in January 2022, for establishments with less than 49 employees.

Al Alawi said the wage protection system is linked to the Central Bank of Bahrain (CBB) and various financial and banking institutions across the Kingdom.

The system aims to ensure that workers’ wages are transferred to their bank accounts regularly and on fixed dates, in a way that improves transparency and the regulatory process.

Al Alawi explained that this supports the resolution of labor disputes related to wages, in addition to helping to further regulate the labor market.

He pointed out that 100% of the establishments targeted in the first phase of the wage protection system have adhered to the system, while their commitment to transfer the wages of their employees through the electronic system has exceeded 80%, through various institutions and financial services. and banking. providers approved by the CBB.

The LMRA previously announced the implementation of the first phase of the wage protection system last May, based on the Cabinet decision on the implementation of the wage protection system, and the minister’s edict. of Labor and Social Development n ° (22) of 2021 specifying the stages of implementation of the system for workers in private sector establishments.

Al Alawi also welcomed the fact that more than 87% of targeted institutions and companies have joined the second phase of the wage protection system so far, after its launch in September.

He said the commitment to pay wages through the system was around 61%, explaining the LMRA’s commitment to communicate directly and continuously with employers to ensure full compliance with the payment of wages of workers registered with from them, and to overcome any difficulties that could prevent registration in the system during the defined period.

The Chief Executive recalled the guarantees in place in the Kingdom to preserve the rights of expatriate workers and employers by law and international charters and to preserve the financial rights governed by employment contracts, through the electronic format provided by the system which helps to strengthen the regulatory process and ensures that employers meet their obligations.