Home Jobs Dubai Introduces Insurance Coverage for Unpaid Salaries, Gratuity, and Repatriation Costs of Employees

Dubai Introduces Insurance Coverage for Unpaid Salaries, Gratuity, and Repatriation Costs of Employees

Mandatory programme for new employment visas and work permits starting August 2023.

by THE GULF TALK
Dubai Introduces Insurance Coverage for Unpaid Salaries, Gratuity, and Repatriation Costs of Employees

Dubai South, through the Dubai Aviation City Corporation (DACC), will provide comprehensive insurance coverage for all licensees under its purview. The Employee Protection Insurance programme aims to safeguard workers by covering unpaid salaries, end-of-service gratuities, repatriation costs, and other benefits. This initiative has been introduced to provide a safety net for employees in case their employers fail to meet their obligations.

Starting from August 2023, the insurance scheme will be mandatory for all new employment visas and work permits. Existing visa holders will be required to enroll in the scheme during the renewal of their residency permits.

DACC, which oversees the aviation infrastructure in Dubai, including Dubai International and DWC Airports, and the Dubai South development, is the licensing and regulatory body for over 4,200 companies operating in Dubai South.

The agreement to launch the Employee Protection Insurance scheme was signed between Khalifa Al Zaffin, executive chairman of DACC and Dubai South, and Abdellatif Abuqurah, CEO of Dubai Insurance.

This move aligns with the UAE government’s emphasis on employee protection schemes. The Ministry of Human Resources and Emiratisation (MoHRE) has also introduced a job loss insurance scheme for employees in the federal government, free zones, and private sector to ensure continued decent living for the unemployed and attract and retain top talent.

In addition to covering unpaid salaries, end-of-service gratuities, and repatriation costs, the insurance scheme also includes provisions for the repatriation of mortal remains and unreimbursed expenses.

Implementing the Employee Protection Insurance programme demonstrates Dubai South’s commitment to providing an exceptional working environment and maintaining Dubai’s competitive position globally. It aims to boost the confidence of licensees and prioritize the well-being of workers.

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