Private-sector employers in the UAE will now be required to purchase worker insurance for every new employee before obtaining a work permit, as part of the country’s efforts to strengthen employee protections and improve labour market compliance.
Under the Ministry of Human Resources and Emiratisation’s (MoHRE) Worker Protection Insurance scheme, employers must secure insurance that covers unpaid wages of up to Dh20,000 over a 30-month period if they fail to meet their legal obligations. The policies also cover repatriation costs in the event of an employee’s death.
MoHRE has introduced four insurance packages for different categories of employees and businesses, with annual premiums ranging from Dh40 to Dh100.
The Ministry has also reiterated that employers are responsible for all recruitment-related expenses, including government fees, insurance and guarantees. In addition, employers must provide job-related training, ensure employees understand the terms of their employment contracts and process salaries through the Wage Protection System (WPS).
The guidance reaffirms employees’ statutory benefits, including 30 days of paid annual leave after one year of service, maternity, parental, bereavement and study leave, sick leave, and end-of-service gratuity for eligible expatriate workers.
Employers are prohibited from retaining employees’ passports or official documents and must issue employment certificates free of charge upon request.
The Ministry also reminded employers that salaries must be paid within 15 days of the due date. Organisations that fail to comply may face escalating penalties, including restrictions on obtaining new work permits under the WPS.
Separately, companies that exceed Emiratisation targets while remaining fully compliant with labour regulations may qualify for preferential status and discounts on selected Ministry services. MoHRE also warned employers against labour law violations such as delayed salary payments, fraudulent Emiratisation practices and submitting false information.
The measures form part of the UAE’s broader strategy to enhance worker welfare, strengthen regulatory compliance and promote responsible employment practices across the private sector.
