Further to the recent announcement in June this year that the Ministry of Human Resources and Emiratisation has replaced the Dhs 3,000 employee bank guarantee scheme with a new insurance plan, the Cabinet announced that refunds to employers will begin this month.
The new insurance plan will safeguard the rights of the employee and, will replace the mandatory deposit of Dhs 3,000 deposited by the employer, and costing Dhs 60 per year will subsequently reducing the cost of recruitment. The government will start refunding deposits to employers from 15 October after they submit proof of not having committed any employee visa violations.
The government has tied up with Dubai Insurance Company to issue the new insurance plan for registered employees working across the private sector as well as in households and domestic help.
The domestic workers’ policy will cover a number of things that protect both the employer and employee including the cost of replacing the employee if they can no longer work due to health issues or because they wish to cancel the work contract. The policy also covers any unpaid wages, gratuity and end of service benefits, leave and overtime allowance and a return ticket to their country.
His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice-President and Prime Minister of the UAE and Ruler of Dubai said that the new low-cost insurance scheme will release Dhs 14 billion back into the private sector and added that this will reduce the cost and boost the ease of doing business in the UAE.