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Wednesday, October 10, 2018

“Human Resources and Emiratization”: New employee insurance policies to start on October 15

The Ministry of Human Resources and Emiratization (MoHRE), confirmed that insurance policies will be conducted electronically and instantaneuosly when applying for new work permits starting October 15, which is also the same day that was mandated by the UAE Cabinet to abolish bank guarantee system and replacing it with a low-cost insurance scheme.

The Ministry of Human Resources and Emiratization (MoHRE), confirmed that insurance policies will be conducted electronically and instantaneuosly when applying for new work permits starting October 15, which is also the same day that was mandated by the UAE Cabinet to abolish bank guarantee system and replacing it with a low-cost insurance scheme.

Aisha Bel Harfia, Assistant Undersecretary for Domestic Worker Affairs at MoHRE, said the Ministry has taken all necessary measures to start issuing insurance policies and refunding bank guarantees to the employers, starting from the aforementioned deadline.

She added that establishments registered with the Ministery will have two options. The first is to buy insurance that can be issued immediately when typing the work permit application at Tasheel, or through Tasheel e-service for establishments that can complete their own work permit applications.

Bel Harfia explained that the second option is to submit a AED3,000 bank guarantee for the employee, as per the rules and regulations of the current bank guarantee system, which will be available alongside the new insurance system, in order to provide employers with different options to choose from.

Bel Harfia added that the insurance document for domestic workers will be issued upon submitting applications through either Tasheel or Tadbeer service centers.

Insurance policies for private sector employees and domestic workers registered with the Ministry will be issued through the insurance conglomerate, a group national insurance companies that have been selected based on specific criteria 

These policies are valid for two years, which is the same the employment contract term for private sector employees and domestic workers, and cost AED60 annually per employee.

The new policies for private sector employees, provides coverage of up to AED20,000 per employee against unpaid dues, such as end of service benefits, and unpaid holidays and overtime, in addition to airfare for their trip back to their home country, and work injuries compensations as ordered by court.

Meanwhile, domestic workers insurance covers the cost of replacing the worker in case of work discontinuation, deemed medically unfit, or should the worker decide to terminate employment unilaterally. It also covers unpaid wages and entitlements, as well as end of service benefits, unpaid vacations and overtime, if the employer fails to pay them. Airfare to home country and work injuries compensations.

Bel Harfia added that Ministry will start refunding bank guarantees, which totals nearly AED14 billion, starting October 15.

She added that bank guarantees will be refunded to establishments upon cancelling work permits of workers covered by these guarantees, thus ending the working relationship between the two parties, or when purchasing an insurance policy upon renewing an employee’s work permit, provided that the establishment has not committed violations related to non-payment of salaries during the last six months prior to the renewal of the expired permit.

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