Today's Edition
SAMI ABDUL RAOUF (DUBAI)
The Ministry of Human Resources and Emiratisation (MoHRE) confirmed four insurance packages as part of the Workers Protection Programme, optionally applied to all establishments in the private sector to protect workers in the event of employer’s refusal or inability to pay workers’ dues.
The insurance will provide a maximum coverage of Dh20,000 to every worker in the private sector.
According to MoHRE figures, 98.8 percent of the workforce in the private sector is covered under the Workers Protection Programme.
The Ministry noted that the first insurance package targets skilled workers with a policy at a cost of Dh137.50 for a period of 30 months, meaning the value of the annual policy is only Dh55.
The second package is for limited skilled workers, with the policy priced at Dh180 for 30 years on a monthly basis. The price of the insurance policy in this package for women workers is Dh72.
The third package covers workers at high-risk establishments. The price of the policy is tagged at Dh250 for a period of 30 months, equivalent to Dh100 annually.
The fourth package is for auxiliary workers, and they are required to pay Dh100 for the insurance policy for a period of two and a half years, or Dh40 annually.
The Ministry said that the Workers' Protection Programme has succeeded in achieving outstanding results, most notably protecting workers’ entitlements, raising the value of insurance coverage, reducing the financial burden on many establishments, and contributing to preserving workers’ rights. These measures have enhanced the UAE’s global standing, it added.
The Ministry’s insurance coverage includes wages up to a maximum of the last 120 days prior to the last working day, end-of-service gratuity, workers' return costs, in the event of death, repatriation costs of the mortal remains, costs related to work-related injuries and diseases, and flight tickets for workers who absconded from work if the absconding was reported, and the worker was arrested within the coverage period.
Regarding the mechanism for obtaining insurance coverage, the employer can purchase the insurance online when issuing or renewing a permit for the worker.
Every worker or employer can inquire about his insurance certificate through the Insurance Pool website.
In case of a claim or financial dues, the Ministry of Human Resources and Emiratisation studies the file and communicates with both parties to settle the dispute amicably.
The executive decision of the court is transferred to the Insurance Pool to take the procedures for payment, on behalf of the court based on an order issued by the Labour Enforcement Department in the competent court. However, this does not mean that the employer is absolved of responsibility, but rather he will be required to pay amounts for some cases covered by the insurance policy, and the insurance system supports small- and medium-sized companies in the country, which represent the backbone of the economy.
The MoHRE launched the current insurance policy for workers in October 2018. It was implemented as per the UAE’s Cabinet decision regarding abolishing the mandatory bank guarantee for the recruitment and employment of workers and replacing it with a low-cost insurance system, and under the supervision of the Ministry of Human Resources and Emiratisation.
The programme is envisaged as an alternative option for employers keeping a bank guarantee of Dh3,000 while recruiting a new worker.
