UAE: Employers must provide insurance coverage of up to Dh20,000

UAE: Employers must provide insurance coverage of up to Dh20,000

According to the Mohre website, the policy has been put in place to protect workers in the event of a company’s bankruptcy or failure to pay employees' benefits

Published: Mon 31 Oct 2022, 2:57 PM

Employers in the UAE is obligated to provide insurance coverage of up to Dh20,000 for every worker to protect them in the event of a company’s bankruptcy or failure to pay the workers’ benefits, according to authorities.

The UAE’s Government Portal has clarified on its website that instead of keeping a bank guarantee of Dh3,000 with the Ministry of Human Resources and Emiratisation (Mohre), employers can opt to buy insurance for workers.

“Called Taa-meen, the insurance will provide a maximum insurance coverage of Dh20,000 to every worker and protect them from the company’s bankruptcy or failure to get their legitimate dues. In case the insurance company pays the worker, the employer will have to repay the same to the insurance company,” said authorities.

On October 15, 2018, the Mohre implemented the current insurance policy for workers. The insurance policy, called Taa-meen, was approved by the UAE Cabinet in June 2018 and it is intended to be an alternative option for employers keeping a bank guarantee of Dh3,000 while recruiting a