The worker's bank guarantee and the protection insurance: what to know

Private-sector establishments must secure their workers' rights with MOHRE. Since Ministerial Resolution No. 318 of 2022 (announced 9 August 2022) they choose one of two options. The first is a bank guarantee of at least AED 3,000 for each worker, issued by a bank in the UAE, valid for one year, renewed automatically and payable on MOHRE's demand. The second is an insurance policy for 30 months: AED 137.50 for each skilled worker, AED 180 for each low-skilled worker, and AED 250 for each worker of high-risk establishments not registered in the Wages Protection System. The insurance covers up to AED 20,000, including the last 120 days' wages, the end-of-service gratuity, the ticket home, the repatriation of the body if the worker dies, and other dues the employer cannot pay, by decision of MOHRE or the labour court. An employer who deposited a guarantee can ask for it back (or for what remains of it) in four cases: the worker's permit is cancelled and the worker has left the UAE; the worker died and the body was repatriated or buried in the UAE; the worker moved to a new employer; or any other case where the employer proves that the permit was cancelled and the worker's dues were paid. A court ruling can instead order the guarantee to be paid to the worker. Employment agencies have their own licence guarantee, which MOHRE returns after the agency licence is cancelled and all obligations are met (1 working day, no fee). We can submit the refund request, or withdraw one filed by mistake, through Tasheel; staff check the worker's status first.