In case of a company’s bankruptcy or failure to pay the workers’ entitlements, the new policy will provide a maximum insurance coverage of AED 20,000 per worker. It will cover any labour entitlements mentioned in Federal Decree Law No. 33 of 2021 Regarding the Regulation of Employment Relationship, and its Executive Regulations. It will also cover domestic labour entitlements stipulated in Federal Decree Law No. 9 of 2022 Concerning Domestic Workers and its amendments.
Covered entitlements include:
- unpaid wages (up to a maximum of the last 120 days prior to the worker’s last working day)
- end-of-service benefits
- repatriation costs
- costs of repatriating the body in case of death
- medical expenses related to work injuries or occupational diseases
- airfare for absconding workers reported if a report was filed and the worker was apprehended during the insurance coverage period.
For domestic workers, the policy covers the following:
- unpaid end-of-service benefits
- unpaid wages (maximum of the last 120 days)
- unpaid repatriation expenses
- unpaid medical expenses related to occupational injuries or diseases
- repatriation of the body in case of death
- airfare for absconding domestic workers if a report was filed and the worker was apprehended during the coverage period
- any other unpaid financial entitlements as outlined in Federal Law No. 10 of 2017 and its amendments
- coverage limit: AED 20,000 per claim, including the total of all claims made during the coverage period.
General provisions
The coverage of the dues by the insurance company does not relieve the employers from their responsibilities. Employers would still have to pay back to the insurance company all dues which the latter paid to the worker.
If the employer does not repay the insurance company, MoHRE will suspend the employer’s file and freeze new work permits. It will also require the employer to provide AED 3,000 bank guarantee upon renewal of the existing work permits. (Note: this provision applies only to firms; it does not apply on domestic labour).
Note that health insurance is not covered by this policy.