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In-Abu Dhabi, June 13, 2018 and WAM
The Cabinet, chaired by His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE and Ruler of Dubai, adopted a strategic decision to consolidate the business environment in the UAE. For business.
Under the new system, a new insurance product was introduced for the categories of workers provided through the insurance companies operating in the country. The insurance cost of labor is 60 dirhams per year in exchange for canceling the mandatory bank guarantee deposit of 3000 dirhams per worker.
The newly created system is a strategic shift and a qualitative shift in the UAE’s labor rights protection policy to be one of the first countries in the world to guarantee the salaries of private sector workers. The system will also reduce labor costs and ease the burden on employers.
The new system will allow businesses to recover approximately AED 14 billion, representing the value of current guarantees paid by employers, which will enable them to invest these amounts optimally in the development of their business.
The Cabinet also met with HH Sheikh Saif bin Zayed Al Nahyan, Deputy Prime Minister and Minister of Interior and His Highness Sheikh Mansour bin Zayed Al Nahyan, Deputy Prime Minister and Minister of Presidential Affairs, a package of facilities regarding residency procedures for visitors and residents in the country. To provide temporary residence without a fee for 6 months for violators seeking work in addition to exempt transit tourists from all fees for the first 48 hours.
The Council also approved allowing gifted and students to extend residence for two years after graduation to study their future options.
The Council also adopted a resolution on empowering those who have an interest in the labor market in a way that ensures their rights to equality with others, as well as a number of decisions and topics in various fields.
The Cabinet’s approval of the new insurance system on wages and entitlements for the employment of enterprises and auxiliary workers registered with the Ministry of Human Resources and Emiratisation as an alternative to the current bank guarantee.
Under the new system has been introduced a new insurance product for categories of workers in accordance with the conditions and controls in force .. This product is provided through the insurance companies operating in the state.
The new system will allow businesses to recover approximately AED 14 billion, representing the value of current guarantees paid by employers, which will enable them to invest these amounts optimally in the development of their business.
The value of the insurance policy in the new system is 60 dirhams per year for each worker and covers the entitlements of workers in terms of end of service benefits, vacation allowance, overtime allowance, unpaid wages, worker’s return ticket to his country, Based on complaints from workers.
The insurance coverage for the rights and entitlements referred to is AED 20,000 for each worker at a time when the current bank guarantee does not provide these levels of coverage even though the establishments provide a bank guarantee of AED 3,000.
Accommodation and work facilities.
The Council of Ministers approved today a new legislative package that includes legislation to review the current residency system to extend the residence permit for their dependents after completing their university studies for a period of two years, thus making it easier for students and their families to study their future practical options.
The decision also includes special facilities allowing visitors or transit passengers to be exempted from all fees for the first 48 hours and paying only AED 50 for an additional 96 hours, thus providing flexibility in the procedural regulations for entry of individuals and reducing the cost of accommodation in the country.
In the same context, the Council of Ministers adopted a decision to grant the violators a voluntary leave and change of residence without the passport stamping, to deny the future visit, and not to leave the country to adjust the status of those coming for a visit or tourism.
The facility also includes providing job opportunities for those wishing to work in the country with 6 months’ stay free of charge, thus enhancing the country’s position as a land of opportunities and realizing dreams, and a destination for minds, experts and job seekers.
