Abu Dhabi – The UAE will start tomorrow, Monday, implementing a low-cost insurance scheme for recruiting expatriate workers.
Under the new format, private companies in the UAE will be able to opt for a AHD 60 insurance scheme to hire foreign workers, instead of depositing AED3,000 per worker as bank guarantee.
The Ministry of Human Resources and Emiratisation announced that the new procedure would take effect on the 15th of October.
The ministry said it would also begin disbursing the bank guarantees that is worth AED 14 billion when companies opt for the insurance scheme.
The reimbursement will not apply to companies that have committed salary-related violations six months before renewing work permits.
The scheme, which is in line with a Cabinet decision that was issued in June, will cover up to AED20,000 per worker. It covers workers' end of service benefits, vacation and overtime allowances, unpaid wages, return air tickets and work injuries.