Urgent.. A new mandatory insurance system to protect the interests of workers covering 6 cases

The Ministry of Human Resources and Emiratisation in the United Arab Emirates has announced the obligation of high-risk employers to insure their workers, and this system includes 6 cases.

The Ministry of Human Resources and Emiratisation in the United Arab Emirates has announced the obligation of high-risk employers to insure their workers, and this system includes 6 cases.

Low-cost labor insurance system in the UAE:
In this context, the UAE Ministry of Human Resources and Emiratisation has emphasized that the “low-cost insurance” system that was recently adopted and placed within the labor rights insurance system registered by the ministry, as an alternative to the “bank guarantee” system that was previously allocated to employment, stressing However, the insurance system is considered mandatory in high-risk establishments when issuing or renewing work permits.

The labor insurance system in the UAE:
And human resources announced that establishments in non-high-risk classifications have the right to choose between continuing the bank guarantee system or adopting the insurance system for workers and recovering the surplus of the bank guarantee if there is a surplus, as well as they can combine the two systems when renewing the work permit.

The ministry made it clear that the bank guarantee ceiling on employment was canceled, and it was 3000 dirhams for each worker, several months ago.

Obligating the employer to pay 20 thousand dirhams, insurance coverage for the worker:

Human resources have made it clear that the process of developing insurance systems for workers would achieve an additional benefit for the workers and the employer, as the insurance coverage includes additional labor entitlements, and flexible conditions have been established for them in order to protect the worker from cases of the employer’s failure to pay the financial dues or his inability to do so. The value of the insurance was set at a value of up to 20 thousand dirhams for the benefit of the worker in the private sector.

Combining the Bank Guarantee System and Unemployment Insurance:
Establishments and employers have the right to combine the banking guarantee system and the unemployment insurance system to protect the interest and protection of employees and workers.

The establishments were given the right to choose between more than one insurance complex or an insurance company.

Cases covered by the labor insurance system in the UAE:
Six cases covered by the new insurance system:

First: wages with a maximum wage for the last 120 days.

Second: End of service gratuity.

Third: the expenses of returning the worker to his homeland.

Fourth: The costs of transporting the body of the worker in the event of death.

Fifth: costs related to work injuries and illnesses.

Sixth: Travel tickets for workers who are absent from work, as well as any labor financial entitlements specified by Federal Decree-Law No. (33) of 2021 regarding the regulation of labor relations.