UAE – Housemaid ins. will replace bank guarantee
Thursday, 10 04 2018, Category: Insurance and Reinsurance, Country: U.A.E
A new insurance plan replacing bank guarantee is expected to bring down cost of hiring housemaids and other domestic workers, government officials said on Wednesday.
As part of sweeping new changes to visa and workers’ laws, the Ministry of Human Resources and Emiratisation will no longer take mandatory bank guarantee deposit of Dh3,000 per worker from employers.
The Ministry of Human Resources and Emiratisation announced yesterday that it would also start refunding the bank guarantees to businesses from October 15, in implementation of a Cabinet decision in June. The new insurance system on the registered employees will replace the bank guarantees to safeguard the rights of the employees.
The announcement to implement the Cabinet decision followed the signing of a memorandum of understanding by the ministry in Dubai on Wednesday with an insurance conglomerate represented by Dubai Insurance Company, where the co