New Visa System in UAE Goes Live on Monday

Published October 14th, 2018 - 02:31 GMT
The scheme, which is in line with a Cabinet decision that was issued in June, will cover up to Dh20,000 per worker. (Shutterstock)
The scheme, which is in line with a Cabinet decision that was issued in June, will cover up to Dh20,000 per worker. (Shutterstock)

Private companies in the UAE will soon be able to opt for a Dh60 insurance scheme to recruit workers instead of depositing Dh3,000 per worker as bank guarantee as is the practice now. The Ministry of Human Resources and Emiratisation will start implementing the low-cost insurance scheme from mid-October, it was announced earlier this month.

The Ministry of Human Resources and Emiratisation (MoHRE) has said that the issuance of employee insurance will begin on October 15.

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The ministry said it would also begin disbursing the bank guarantees that is worth Dh14 billion when companies opt for the insurance scheme. The reimbursement will not apply to companies that have committed salary-related violations six months before renewing work permits.

The scheme, which is in line with a Cabinet decision that was issued in June, will cover up to Dh20,000 per worker. It covers workers' end of service benefits, vacation and overtime allowances, unpaid wages, return air tickets and work injuries.

It is aimed at lowering the cost of doing business in the country.

Nasser Al Hamli, Minister of Human Resources and Emiratisation, said the new scheme will secure workers' rights and salaries. "The system will also reduce the financial burden on companies by lowering the cost of recruitment."

The ministry has signed an agreement with the Dubai Insurance Company, which will issue the policies electronically through a group of insurance firms.


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