Reasons for Company Blocked due to Wage Protection System Qatar (WPS)

How the company is being blocked in labor department and what are the things we need to remember to avoid this kind of issue.

Labour Law No. 14 of 2004 ensures that all employers comply with regular and timely payment of workers' wages; thus, the Ministry of Labour and Social Affairs and the Qatar Central Bank join forces and initiate the Wage Protection System (WPS) to manage and ensure the documentation of the salary payments of the workers in all establishments.

In case of non-compliance with regular monthly wage payments, the Labour Department will impose a ban on the company until the reason for the ban is resolved. The ban can be imposed for one of the following reasons:

• Failure to pay salaries within the specified deadlines.

• Paying salaries less than 80% (or in some cases, 50%) of the employees.

• Imposing deductions or fines on employees exceeding the legal limits.

• The actual number of transferred employees is less than the number registered with the Labor Department.

There could be other issues that may lead to the company's ban by the Labour Department.

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