Early introduction of low cost insurance
The UAE government has planned to abolish bank guarantees provided by private companies when recruiting their employees. In return, the government proposes the introduction of a "low cost" insurance scheme with a premium of up to 60 AED (16 USD) per year and per worker instead of the 3 000 AED (816 USD) paid under the previous scheme.
The new guarantee covers end-of-service benefits, overtime, unpaid wages, airline tickets and work accidents. The objective is to protect the rights of employees and reduce the burden of corporate business.
As a result, the companies are expected to save 14 billion AED (3.811 billion USD). This amount is good enough to encourage investment in the country.
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