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Hiring Maids Made Simpler and Cheaper in the UAE

4/10/2018

Ministry of Human Resources and Emiratisation announced that it will no longer require bank guarantee of UAE Dirhams 3,000 per worker for hiring maids

The Ministry of Human Resources and Emiratisation (the Ministry) announced yesterday that it will no longer require bank guarantee of UAE Dirhams 3,000 per worker for hiring maids by their employers. To make the hiring process simpler and much cheaper, this bank guarantee shall be replaced by an insurance plan.

This is in line with a Cabinet decision to adopt an insurance system in place of mandatory bank guarantees. The insurance is aimed to safeguard the rights of the employees. The UAE Dirhams 3,000 per worker bank guarantee shall be replaced by the UAE Dirham 60 insurance premium per worker per year, providing a coverage of UAE Dirhams 20,000 per worker. Furthermore, this insurance policy shall also cover end-of-service benefits, vacation and overtime, return air ticket, unpaid wages and injuries.

The Ministry of Human Resources and Emiratisation further confirmed that they will start refunding the bank guarantees to the employers / businesses from October 15, to give effect to the Cabinet decision. A capital of almost UAE Dirhams 14 billion is expected to be freed for businesses by this move. To claim the refund, a pre-requisite must be fulfilled-the employer must not have committed any violations in relation to the payment of the wages during the last six months before the renewal of work permits.

The Ministry also signed a memorandum of understanding with an insurance conglomerate represented by Dubai Insurance Company. This insurance conglomerate shall issue insurances electronically for the workers in the private sector and domestic workers registered with the Ministry.

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