Private companies in the UAE will be able to opt for a Dh60 insurance scheme (Dh 120 for 2 years) to recruit workers instead of depositing Dh3,000 per worker as bank guarantee as is the practice now. For all employment visa renewal in UAE, we can renew the visa without bank guarantee by paying an insurance fee of Dh120. If the company required the refund of the existing bank guarantee , we can apply only after the visa renewals using the insurance scheme. For new visas, it is not required to pay Dh 3,000 as bank guarantee.
The scheme, which is in line with a Cabinet decision that was issued in June, will cover up to Dh20,000 per worker. It covers workers’ end of service benefits, vacation and overtime allowances, unpaid wages, return air tickets and work injuries.
In order for companies to get their bank guarantees refunded, they must not committed any violations related to failure to pay salaries for at least six months before the employment visa renewal in UAE
There will be two options for visa system after the new rule also. Either the company can pay bank guarantee or insurance of Dh 120 for 2 years.
For more information, Please call +971 2 491 9050 or marketing@plusuae.com
