Salary delays, labour complaints: 5 cases when UAE companies are considered high-risk

An insurance policy ensures that the staff will get their dues in case their employer goes bankrupt



By Web Desk

Published: Wed 7 Dec 2022, 4:54 PM

Last updated: Wed 7 Dec 2022, 5:25 PM

UAE employers are obligated to provide insurance coverage to their staff so they can be protected in case the company goes bankrupt. And for certain firms, the insurance policy for employees becomes a requirement when obtaining or renewing work permits.

In an advisory shared on Wednesday, the Ministry of Human Resources and Emiratisation (Mohre) explained that the rule applies to firms that are considered 'high-risk'.

Here are the five cases in which companies are classified as high-risk:

  1. Late payment of employee wages
  2. More than one work strike in the past 12 months
  3. Labour complaints referred by the ministry to court exceeding 30 per cent of the total of registered workers
  4. Invalid and non-renewed work permits exceeding 30 per cent of the total registered workers
  5. Notifications on work strikes exceeding 30 per cent of the total registered workers

Called Taa-meen, the policy will provide insurance coverage of up to Dh20,000 to every worker. The fund ensures that the staff will get their dues if the employer goes bankrupt, according to the UAE Government website.

This policy has been in place since 2018. It is intended to be an alternative that employers can opt for instead of keeping a Dh3,000 bank guarantee for every new worker recruited.

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