In a major decision, the UAE government would enforce from next year a new rule making it mandatory for all companies to pay wages of their legal staff through banks so as to ensure there were no delays in payments by employers.
The decision, expected to benefit Indian banks, was taken by the cabinet on Sunday night and the Ministry of Labour would soon issue an order in this respect that would come into effect from January 1, 2008, the official Emirates news agency said.
In recent months, many workers have complained of delay in getting their salaries, and in some cases forcing workers to go on strike.
In the Gulf region, only Bahrain has made it mandatory for companies to transfer the salaries through banks and the system is working fine.
Indian ambassador to the UAE CM Bhandari said that the move is welcome and that it will go a long way in protecting the workers' interests.
Observers say that opening of bank accounts for workers is a problem since banks here are reluctant as they have only small funds, but Indian banks in the UAE expect a huge opportunity.