It reiterated that pilgrims require a Haj visa and it can be obtained through recognised official channels
The UAE has issued a new resolution regarding bank guarantees and employees’ protection insurance scheme in the private sector.
The resolution issued by Dr Abdulrahman Abdulmannan Al Awar, Minister of Human Resources and Emiratisation, offers establishments the option to choose between providing a bank guarantee and an insurance policy.
This gives firms the “opportunity to choose what is most suitable for them and helps in reducing operational costs”, according to a top official.
Aisha Belharfia, assistant undersecretary for Labour Affairs at the ministry, explained that under the new resolution, establishments may pursue one of two options:
1. Provide a bank guarantee of no less than Dh3,000 for each worker paid through a UAE-based bank. The guarantee is valid for one year and can be automatically renewed.
2. Offer 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 up to Dh20,000, and includes the wages of the worker’s last 120 working days, end-of-service gratuity, the expenses of returning to his/her home country; and in the event of the worker’s death, the costs of repatriating the body to his home country, and other rights and entitlements that the employer is unable to fulfil, based on a decision by the ministry or the labour court concerned.
The resolution outlines four cases where the employer may submit a request to reclaim the employee’s bank guarantee or the remainder therefrom:
1. Cancellation of the employee’s work permit and providing proof of departure from the country;
2. Employee’s death and providing proof of the body’s repatriation or burial in the UAE;
3. Employee takes up new employment;
4. Any other case in which the employer provides a proof of cancellation of the employee’s work permit and payment of entitlements.
The resolution is in line with the legislative framework that aims to preserve the rights of workers as well as to support the business community.
Aisha Belharfia said: “The UAE’s commitment to guarantee and balance the rights of workers as well as the employers reflect national legislations and highlight the nation’s active role in the main agreements originating from the International Labour Organisation.”
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