UAE: Cabinet introduces new labour insurance, visa facilitation
Source: Middle East Insurance Review | Jul 2018
The UAE Cabinet has adopted a number of strategic decisions with regards to foreign workers’ insurance in the private sector, as well as a legislative package of visa facilitations.
Under the new system, a new insurance product is introduced for the labour categories and offered by the insurers operating in the UAE where the insurance cost for labour will be AED60 ($16.35) annually and the mandatory bank guarantee of AED3,000 per worker is cancelled. The policy covers the workers’ entitlements in terms of end of service benefits, vacation allowance, overtime allowance, unpaid wages, worker’s return ticket and cases of work injury, in which the insurance coverage amounts to AED20,000 per worker.
The newly created scheme secures workers’ rights in the private sector and reduces the burdens on employers. It allows businesses to recover approximately AED14bn, representing the value of current guarantees paid by employers, which will enable them to further invest in the development of their business. The system also enhances the ease of doing business in the UAE, which effectively contributes to market prosperity and growth.
The Cabinet also adopted a number of visa facilitations for visitors, residents, families and people overstaying their visa to cater for a wider segment of the society. The Cabinet approved a new legislative package, including a review of the current residency system to allow a two-year extension of the residency period for the dependents of their parents after finishing their university studies.
A new decision has also been approved to exempt transit passengers from all entry fees for the first 48 hours. Transit visa can be extended for up to 96 hours for a fee of only AED50. Obtaining transit visa will be facilitated by a number of express counter at the passport-control hall across UAE airports.
In the same context, the Cabinet adopted a decision to grant people overstaying their visa a chance to leave the country voluntarily without a ‘no entry’ passport stamp. A new six-month visa will be introduced for job seekers who overstayed their visa but wish to work in the country. The temporary visa enhances the UAE’s position as a land of opportunities and a destination for talents and professionals. M
AED1 = $0.27