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UNITED ARAB EMIRATES – New Insurance Scheme for Workers to Take Effect

The Ministry of Human Resources and Emiratisation (MOHRE) has announced that its new insurance scheme for foreign workers will be available from 15 October 2018.

The new scheme, announced alongside other changes on 13 June 2018, will be offered as an alternative to the existing bank guarantee system.

It is only applicable for companies operating on the mainland and registered with MOHRE, and not for companies established in free zones.

How will it work?

When an employer applies for an initial or renewal work permit, they will have the choice of either:

  • purchasing workers insurance under the new scheme, for AED 60 per worker per year; or
  • providing a bank guarantee of AED 3000 per worker, as under the current system.

Action Items

  • Employers who may be affected by the upcoming changes are advised to contact their immigration specialist for the latest information and case-specific guidance.

This news alert was prepared using information provided by Sesam Business Consultants.

DISCLAIMER: The information contained in this immigration alert has been abridged from laws, court decisions, and administrative rulings and should not be construed or relied upon as legal advice. If you have specific questions regarding the applicability of this information, please contact Peregrine © 2017 Peregrine Immigration Management Ltd.