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Monday, April 12, 2021

Value of the insurance product increased to AED 250for establishments not committed to paying workers' wages

The Ministry of Human Resources and Emiratisation, MoHRE has called on private sector establishments to adhere to paying their employees' wages on the scheduled dates through the wages protection system, to enhance work relationship stability.

This comes in light of the challenges associated with the COVID-19 pandemic, which negatively affected global labor markets, and raised the levels of risk involved in compliance with paying the wages of workers in private sector establishments, which led to an increase in the value of the insurance policy from AED 120 to AED 250 for every worker in non-compliant establishments.

The new insurance product covers financial dues for 30 months for workers in establishments that are not committed to paying workers' wages through the wages protection system, including non-compliant establishments that have reached the ceiling for the required bank guarantee.

The product contributes to enhancing the work relationship stability between the two parties, especially as it guarantees workers in the targeted establishments receive their dues.

The insurance policy provides all labor rights provided in Federal Law No. (8) of 1980 regarding the regulation of labor relations and its amendments and decisions issued for implementation, including but not limited to (vacation allowance, warning allowance, contract termination allowance, arbitrary dismissal allowance).

This product also covers for employers the value of flight tickets for unemployed workers. This applies if absconding from work has been reported and the worker is seized during the valid period of the insurance coverage. It also covers the costs of transporting the body in the event of death.

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