Insurance policies for welfare of employees wider - GulfToday

Insurance policies for welfare of employees wider


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Abdul Rahman Saeed, Staff Reporter

Dr. Abdul Rahman Abdulmanan Al Awar, Minister of Human Resources and Emiratisation, issued a decision no. 318 for 2022 regarding bank guarantee and workers’ rights insurance. The decision, which was published in the recent issue of the Official Gazette, shall take effect from the date of issuance on June 27, 2022.

The decision stipulates that establishments are committed to one of two options, either to insure each worker or to pay a bank guarantee of no less than Dhs3000 for each worker. Under the first option, the worker shall be insured as per the procedures specified in the manual issued by the undersecretary for human resources affairs in this regard. Under the second option, a bank guarantee shall be paid through a bank operating in the country, provided that it will be valid for one year from the date of issuance and will be automatically renewed and paid at the ministry’s request without any other restrictions.

The decision clarified that the ministry may use either the insurance coverage, liquidate the bank guarantee or deduct any amounts from it in such cases as payment of the expenses of the worker’s return to his home country or to the place agreed upon between the worker and the employer, payment of the amounts that the employer admits to be entitled to the worker and issuance of a judicial ruling to fulfil the worker’s rights thereto.

The decision states that if the second option is chosen above, the employer may submit a request to recover the bank guarantee of the worker or the remainder of it in the following cases: Cancellation of the worker’s work permit and proof that he has left the country, death of the worker, shift of the worker to a new employer.

The decision also states that the ministry may refrain from returning the bank guarantee owed to the employer as per the following: If he is a party to a collective labour dispute, if it is proven that there are fines imposed on the employer’s establishment or work permits have no longer been issued for his establishment.

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