The UAE with efforts to protect the rights of workers and employers in the private sector.

The UAE  with efforts to protect the rights of workers and employers in the private sector.

UAE has released a new resolution on bank guarantee and employee protection insurance scheme. It offers institutions the option of bank guarantee and insurance policy.

Under the new resolution, firms can follow one of two options, said the Ministry's Assistant Undersecretary for Labor Affairs. Provide a bank guarantee of AED 3,000 per worker paid through a UAE-based bank. The guarantee is valid for one year and is automatically renewable.

Offer a 30-month insurance policy worth Dhs 137.50 per skilled worker; AED 180 for each low-skilled worker; 250 dirhams for each worker employed by high-risk firms not registered with the Wages Protection System (WPS).

The insurance coverage is up to AED 20,000 and covers the worker's last 120 working days wages, post-service gratuity and repatriation expenses; In case of death of the worker, the costs of repatriation of the body, other rights and entitlements that the employer cannot fulfill based on the decision of the relevant ministry or the labor court.

The resolution outlines four cases in which an employer may submit a request to recover an employee's bank guarantee or balance: canceling the employee's work permit and providing proof of departure from the country;

Providing proof of the employee's death and repatriation or burial in the UAE;

The employee takes up new employment;

Any other case where the employer provides a proof for cancellation of the employee's work permit and payment of entitlements.

The resolution is in line with the legislative framework aimed at protecting workers' rights and supporting the business community.