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The UAE digital government has confirmed that there is a new system that requires the employer to pay an insurance amount of up to 20,000 riyals in favor of the worker in some cases.
In the details, the UAE digital government confirmed that the employer is obligated to provide insurance coverage for the worker, amounting to 20,000 dirhams, to protect the worker from any developments that may affect him, such as the bankruptcy of the company or its inability to pay his dues.
She pointed out that this procedure represents an alternative to the procedure that was followed before, which is the deposit of 3000 dirhams for each worker with the Ministry of Human Resources and Emiratisation.
She pointed out that on October 15, 2018, the ministry began implementing the new insurance system for its registered workers, in implementation of the Cabinet's decision regarding the abolition of the mandatory applicable bank guarantee, estimated at 3000 dirhams per month when recruiting a new worker, and replacing it with a low-cost insurance system.