A new resolution has been passed regarding bank guarantees and employees’ protection insurance scheme for the private sector, by the UAE Ministry of Human Resources and Emiratisation. A second option entails a 30-month insurance policy, at a value of AED137.50 for each skilled worker, AED180 for each low-skilled worker and AED250 for each worker paid by high-risk establishments that are not registered with the Wages Protection System (WPS), the statement said.
The insurance coverage worth AED20,000, will cover the worker’s last 120 working days, the end-of-service gratuity, the expenses of returning the worker to their home country, and in the event of the worker’s death, the costs of repatriating the body to his home country. The insurance will also cover other rights and entitlements that the employer is unable to fulfil, based on a decision by the ministry or the concerned labour court.
The new resolution is part of the UAE government’s efforts to preserve workers’ rights.
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