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The Cabinet, chaired by His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE and Ruler of Dubai, adopted a number of strategic decisions with regards to foreign workers' insurance in the private sector, as well as a legislative package of visa facilitations.
A new insurance scheme for workers' guarantees has been introduced. The previous mandatory deposit of Dh3,000 per worker is now replaced by a new insurance that cost only Dh60 annually per worker.
The newly created scheme secures workers' rights in the private sector and reduces the burdens on employers. It allows businesses to recover approximately Dh14 billion, representing the value of current guarantees paid by employers, which will enable them to further invest in the development of their business. The system also enhances the ease of doing business in the UAE, which effectively contributes to market prosperity and growth.
#UAE Cabinet approves new reforms to enhance #UAE's economy competitiveness. pic.twitter.com/JDomHZuR4MThe new system aims to achieve a wider coverage of the rights and entitlements for the workers. The value of the insurance policy in the new system is AED 60 per year for each worker and covers the workers' entitlements in terms of end of service benefits, vacation allowance, overtime allowance, unpaid wages, worker's return ticket and cases of work injury, in which the insurance coverage amounts to Dh20,000 per worker.
- Dubai Media Office (@DXBMediaOffice) June 13, 2018
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