UAE Announces New Insurance System, Visa Rules for Foreign Workers

The UAE has introduced a new insurance scheme for workers’ guarantees in private sector as well as legislative package of visa facilitations, the Khaleej Times reported. The previous mandatory deposit of Dh3,000 per worker has now been replaced with an insurance that would cost Dh60 annually per worker.

The scheme, introduced by the Cabinet chaired by UAE Prime Minister Sheikh Mohammed bin Rashid Al Maktoum on June 14 , aims to secure workers’ rights and entitlements in the private sector and reduce the burden on employers. This would enable businesses to recover approximately Dh14 billion, which represents the value of current guarantees paid by employers, which will be subsequently used as investment in the development of their business.

#UAE Cabinet approves new reforms to enhance #UAE's economy competitiveness. pic.twitter.com/JDomHZuR4M

— Dubai Media Office (@DXBMediaOffice) June 13, 2018

The insurance policy will cover 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 cases of work injury, the insurance coverage is Dh20,000 per worker.

“These will go a long way in easing the financial burden on Indian workers, professionals and entrepreneurs,” Navdeep Singh Suri, the Indian ambassador to the UAE, said regarding the decisions taken by the UAE Cabinet, Gulf  News reported. “They also demonstrate the pragmatic and progressive approach of the UAE’s leadership and their commitment towards strengthening the country’s competitive edge. That is why the UAE remains a preferred destination for Indian investors and workers alike.”

Also adopted were a number of visa facilitations for visitors, residents, families and people overstaying their visa to cater to a wider segment of the society. In the new legislative package approved by the Cabinet, the current residency system will grant a two-year extension of the residency period for the dependents of their parents after finishing their university studies. It also decided to grant people overstaying their visa a chance to leave the country voluntarily without a “no entry” passport stamp.

To reduce the financial burden on individuals who wish to adjust or renew their visa, the Cabinet said that these individuals can now do so for a certain fee without having to leave and re-enter the country.

As per the new package, the transit passengers don’t have to pay entry fee for first 48 hours and the transit visa can be extended to 96 hours with a fee of Dh50. The Cabinet has also introduced a new 6-month visa for job applicants who have overstayed their visa, but want to continue working in the country.

The Cabinet also decided to adopt a resolution on empowering “People of Determination” by granting them access to the job market. The resolution will give them the required support for equal employment opportunities in various sectors.