UAE cabinet approves new rules for jobs and visa
The Cabinet, chaired by His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE and Ruler of Dubai, adopted a number of strategic decisions with regards to foreign workers’ insurance in the private sector, as well as a legislative package of visa facilitations.
Major changes adopted by UAE Cabinet
• UAE Cabinet announces decision to abolish mandatory bank guarantee for labour recruitment and replace it with a low-cost insurance system.
• New visa facilitation procedures for visitors, residents, families & people overstaying their visa also adopted.
• UAE exemption of transit passengers from all entry fees for first 48 hours approved. Transit visa extension for up to 96 hours for a fee of Dh50.
• The Cabinet decision also grants people overstaying their visa a chance to leave the country voluntarily without a “no entry” stamp on their passport.
• New 6-month visa to be introduced for job seekers who overstayed their visa but wish to work in the country. Temporary visa to enhance the UAE’s position as a land of opportunities, a destination for talents and professionals.
• UAE grants those who entered country illegally a chance to leave voluntarily with a ‘no entry’ stamp for 2 years, if they present return ticket.
• UAE Cabinet allows individuals wishing to adjust or renew their visa to do so for a fee, without having to leave and re-enter the country.
• UAE Cabinet adopts resolution on empowering ‘People of Determination’, enabling them to equal access the job market.
A new insurance scheme for workers’ guarantees has been introduced. The previous mandatory deposit of Dh3,000 per worker is now replaced by a new insurance that cost only Dh60 annually per worker.
The newly created scheme secures workers’ rights in the private sector and reduces the burdens on employers. It allows businesses to recover approximately Dh14 billion, representing the value of current guarantees paid by employers, which will enable them to further invest in the development of their business. The system also enhances the ease of doing business in the UAE, which effectively contributes to market prosperity and growth.
The new system aims to achieve a wider coverage of the rights and entitlements for the workers. The value of the insurance policy in the new system is AED 60 per year for each worker and covers the workers’ entitlements in terms of end of service benefits, vacation allowance, overtime allowance, unpaid wages, worker’s return ticket and cases of work injury, in which the insurance coverage amounts to Dh20,000 per worker.
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