UAE adjusts expat workers' bank guarantee

UAE adjusts expat workers' bank guarantee
The new policy’s coverage is AED 20,000

Abu Dhabi – Mubasher: UAE’s Human Resources and Emiratisation Ministry on Wednesday unveiled a plan to launch a new insurance system as a substitute to the present bank guarantee of expatriate workers.

The new system aims at covering workers’ claims if employers failed to pay them during a given period, according to the ministry’s quarterly report.

The new insurance system is planned to cover the temporal foreign workers, which reached around 4.915 million in 337,000 companies, the human resources and emiratisation ministry added.

The new policy’s coverage is AED 20,000 and its validity period equals 26 months, the ministry remarked, noting that the policy was priced at AED 120.

The UAE’s ministry stated that the new insurance system was mandatory for all domestic workers and covered about 777,226 of them.

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Source: Mubasher

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