Good news: from prime minister to private sector workers
Sheikh Mohammed bin Rashid Al Maktoum, Ruler of Dubai and Prime Minister of the UAE, has adopted a new system for its employees. The system has created a strategic shift and a qualitative shift in the policy of protecting workers' rights in the UAE to be one of the first countries in the region. A world that guarantees the salaries of private sector workers by reducing labor costs and reducing the burden on employers, effectively contributing to productivity, market growth and balance in the labor relationship. The new system will allow companies to recover nearly AED 14 billion, representing the value of current employer guarantees, which will enable them to make the most of these investments in their business development.
The new system came in order to achieve broader coverage of the rights and benefits of workers in companies that may stumble or lose their ability to meet their legal obligations towards their employees, as well as cover the risk of employing assistant workers in such a way to support lower employment and employment rates for this category of employment.
The insurance policy in the new system is worth AED 60 per annum per worker and covers the entitlements of workers in terms of end-of-service benefits, leave allowance, overtime allowance, unpaid wages, worker's return ticket to his country, as well as cases of work injuries handled through lawsuits based on complaints Provided by workers.
The insurance coverage for the rights and benefits referred to above amounts to AED 20,000 per worker at a time when the current bank guarantee does not provide these levels of coverage, although the institutions provide a bank guarantee of AED 3,000.
The Ministry of Human Resources and Resettlement is expected to announce soon the date and mechanism of implementation of the system, which will be phased out.