Insurance against defaulting/non-compliant employers

Instead of keeping a bank guarantee of AED 3,000 with the Ministry of Human Resources and Emiratisation, employers can opt to buy insurance for workers. Called Taa-meen, the insurance will provide a maximum insurance coverage of AED 20,000 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.

U.Ask

Insurance scheme for workers and domestic workers

On 15 October 2018, the Ministry of Human Resources and Emiratisation (MoHRE) implemented the current insurance policy for workers registered with the Ministry. This was in accordance with the Cabinet’s decision to cancel the mandatory bank guarantee, previously set at AED 3,000 per worker upon recruitment, and replace it with a low-cost insurance system. 

 

Bank guarantee and workers’ protection insurance scheme

According to Ministerial Resolution No. 318 of 2022 Concerning Bank Guarantees and Employees Protection Insurance Scheme (PDF, 461 KB), establishments may choose one of the following two options for the workers:

  • Option 1: Procure a bank guarantee, duly issued from a bank operating in the UAE. The bank guarantee must not be less than AED 3,000 for each worker, valid for one year from its issue date, automatically renewable and paid upon MoHRE’s request, without any restrictions.
  • Option 2: Buy an insurance policy for the worker.

Cost of the worker insurance policy

An insurance policy’s costs depend on the product as shown below:

 

 Insurance product  Insurance premium (for each certificate/transaction) in AED
 Skilled labour  137.5
 Low-skilled labour  180
 High-risk establishments, not compliant with the wages protection system  250
 Domestic workers 105

 

A policy is valid for 30 months.

 

Where can insurance be procured from?

The employer can purchase an insurance policy from the ‘Insurance pool’ website.

Who is covered by the worker insurance scheme?

The worker insurance scheme is designed to protect the rights of private sector employees as well as domestic workers.

How does the insurance scheme work?

  • For current workers

For workers currently employed by an establishment and covered under the existing bank guarantee system of AED 3,000, the employer has the option to either transition them into the new insurance scheme or keep them under the old bank guarantee system. However, the employer can shift current workers under the new insurance scheme only after renewing their permits, not before.

 

  • For new workers

For newly hired workers, the employer has the option to either purchase a two-year insurance policy when applying for the work permit, or submit a bank guarantee of AED 3,000 on behalf of the worker, as per the rules and regulations of the bank guarantee system, which will continue to operate in parallel with the new insurance scheme, giving employers the freedom to choose the preferred option.

 


Insurance coverage for workers’ entitlements

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.


How to get the bank guarantee refund and register in the insurance scheme?

Firms can reclaim the bank guarantee money in the following cases:

  • Cancellation of the worker’s permit and providing proof of their departure from the UAE
  • The worker is deceased and has either been repatriated to his home country or buried in the UAE
  • The worker has been transferred to the sponsorship of a new employer.
  • Any other case in which the employer proves the cancellation of the work permit and full payment of the worker’s entitlements

 

The insurance document and bank guarantee refund can be processed and obtained from business services centres and domestic worker recruitment offices, as well as through the MoHRE app available on Google Play and App Store. Once the employer receives the refund receipt, they may visit the bank to retrieve the deposited amount. The insurance policy is issued instantly upon submitting the work permit application through the approved service centres.

 

Firms can either reclaim the bank guarantee refund when the worker’s permit is cancelled and the employment relationship ends, or when an insurance policy is purchased upon permit renewal, provided the company has not committed any salary payment violations in the six  months prior to the permit renewal. 

 

 

Useful links:

 

Source: Ministry of Human Resources and Emiratisation (MoHRE).

Updated On :

07 Aug 2025

Prev topic

Health insurance for private sector employees and domestic workers

View all Services

Next topic

Insurance against job loss