Labor Insurance
What is Labor Insurance?
UAE is proud to provide a unique insurance scheme to the workforce, registered in the Ministry of Human Resources and Emiratization (MOHRE) since 2018, through a program that pays the outstanding dues to the workers in case of the financial failure of the employers.
For this purpose, an insurance pool has been established from a group of reputable national insurance companies with strong financial solvency (A rated) and administered by Dubai Insurance.
This program is managed through a state-of-the-art real-time database for the issuance of the certificate of insurance and collection of premiums.
The eligible employees will be compensated with a Monthly cash benefit up to 60% of their average basic salaries of the 6 months prior to loss of employment. Cash benefit shall be provided for maximum 3 consecutive months for a claim only for the workers who pay the monthly premium for at least 12 consecutive months.
What are the benefits as per UAE labor law?
Minimum guarantees include paid vacations, working hours, termination, severance and notice periods, sick leave, maternity allowances and benefits.
Foreign companies’ responsibilities reach beyond simply complying with social security and payroll regulations – although these still add up to a demanding workload.