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|03 October, 2018

UAE to roll out new visa system soon

The newly created scheme secures workers' rights in the private sector and reduces the burdens on employers.

Airport customer service representative holding passport. Image used for illustrative purposes.

Airport customer service representative holding passport. Image used for illustrative purposes.

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UAE - The Ministry of Human Resources and Emiratisation (Mohre) has announced the date for the implementation of the new insurance system for labourers replacing the old system of bank guarantees.

The system will come into effect from mid-October as per the ministerial decision issued by His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE and Ruler of Dubai, earlier in June.

The new insurance scheme will cover up to Dh20,000 per worker in financial claims. The policy will be considered the first of its kind in the world which guarantees worker's pay in the private and domestic sectors.

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The newly created scheme secures workers' rights in the private sector and reduces the burdens on employers.

Those who wish to hire labourers have the choice of either purchasing an insurance document along with the two-year work permit which will cost Dh60 per year, or to pay a bank guarantee of Dh3,000 for each worker, as per the old system.

This came after the ministry met with insurance providers represented by Dubai Insurance Company. The providers will issue electronic insurance documents for companies in the private sector as well as workers registered in the ministry.

Nearly Dh14 billion in bank guarantees are set to be returned to businesses from mid-October. This will come intoeffect when the work permit is cancelled or when the sponsor buys a new insurance policy upon renewing the work permit.

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