An increase in the value of insurance for establishments that are not obligated to pay workers' wages to 250 dirhams

The Ministry of Human Resources and Emiratisation has called on private sector establishments to adhere to paying their employees' wages on the scheduled dates through the wages protection system, in order to enhance the stability of the work relationship.

This comes in light of the challenges associated with the Covid-19 pandemic, which negatively affected global labor markets and raised the risk levels of non-commitment to pay the wages of workers in private sector establishments, which led to an increase in the value of the insurance policy from 120 dirhams to 250 dirhams for each worker in non-compliant establishments .

The new insurance product covers financial dues for a period of 30 months for workers in establishments that are not obligated to pay workers' wages through the wages protection system, including non-compliant establishments that have reached the ceiling for the required bank guarantee.

The product contributes to enhancing the stability of the work relationship between the two parties, especially as it guarantees workers in the targeted facilities to receive their dues. 

The insurance policy provides all the labor rights stipulated in Federal Law No. (8) of 1980 regarding the regulation of labor relations and its amendments and decisions issued for implementation, including but not limited to (leave allowance, warning allowance, contract break allowance, unfair dismissal allowance). 

This product also covers for employers the value of travel tickets for workers who are absent from work, in the event that the report of absence is recorded and the worker is seized, during the period of validity of the insurance coverage, and the costs of transporting the body in the event of death are covered.

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