UAE: New insurance policy to allow workers to be paid entitlements in record time

The new mechanism aims to facilitate access to an accomplished justice system

By WAM

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Published: Thu 16 Feb 2023, 3:23 PM

Last updated: Thu 16 Feb 2023, 10:41 PM

The Abu Dhabi Labour Court has adopted developing procedures and new mechanisms to ensure the settlement and delivery of workers' entitlements in a timely manner through simple and practical steps.

Yousef Saeed Alabri, Undersecretary of Abu Dhabi Judicial Department (ADJD), stated that Abu Dhabi courts adopt a sustainable development approach in all judicial proceedings, beginning with the registration of the case, through remote hearings, to the enforcement of the court decisions and the securing of each litigant's rights as guaranteed by the laws of the country, so that justice be achieved and the rule of law prevails.


The new mechanism, Alabri said, aims to facilitate access to an accomplished justice system, following the directives of Sheikh Mansour bin Zayed Al Nahyan, Deputy Prime Minister and Minister of the Presidential Court and ADJD Chairman, to develop a pioneering judicial system that keeps pace with developments and new legislation, in a manner that supports the government's drive to improve competitiveness and support the business and investment environment in the country.

He praised the constructive cooperation with the Judicial Department's strategic partners, and the role it assumes in ensuring the sustainability and continuity of activities in all judicial and enforcement processes.


Ministerial Decision no.318 of 2022 on bank guarantees and employee protection Insurance scheme for private sector workers offers establishments two options, the first is to provide a bank guarantee worth not less than Dh3,000 for each worker, through a bank operating in the country, provided that the guarantee is valid for one year, automatically renewed, and paid at the request of the Ministry of Human Resources and Emiratisation, without any other restrictions.

The second option entails a 30-month insurance policy, at a value of Dh137.50 for each skilled worker, Dh180 for each low-skilled worker, and Dh250 for each worker paid by high-risk establishments that are not registered with the Wages Protection System (WPS).

The insurance coverage amounts to Dh20,000 and includes the wages of the worker's last 120 working days, the end-of-service gratuity, the expenses of returning the worker to their home country, and other labour rights and entitlements that the employer fails to meet, on the basis of a decision issued by the competent ministry or the competent labour court.

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