Ministry of Human Resources doubles insurance amount for
companies that do not pay salaries on time, affected workers
will be paid double the amount
Dubai (News Hub update news) The UAE has the best laws in place to protect the rights
of workers, which are aimed at protecting them from exploitation by employers and ensuring
timely payment of their salaries. Companies in the UAE that do not pay their employees on
time are no longer good. The UAE Ministry of Human Resources has made significant
amendments to the workers' insurance laws.
Companies that do not pay their employees on time will now have to pay double on insurance.
The UAE Ministry of Human Resources said in a Twitter message that all businesses are required
to pay their employees through the Wages Protection System.
As punishment for companies that
do not pay their salaries on time, the amount of insurance coverage for employees has been
increased to 250 dirhams.
Companies that pay their employees regularly and on time will still have to pay only 120
dirhams. According to the Daily Gulf News, in 2018, the government had introduced an
insurance policy called 'Taa-means to protect the employees of private companies. According
to the Taa-means policy, the company owner was given the option to deposit 3,000 dirhams as
a bank guarantee on hiring a person or pay 120 dirhams per employee under the insurance policy
which Will be for a period of two years.
If the company goes bankrupt or fails to pay the salaries of the employees, the affected employees
will be paid 20,000 dirhams per person as insurance. This amount can also be given to the affected
employee for off-service benefits, holiday allowance, non-payment of salaries, non-arrangement of
the air tickets. In addition, money will be paid in case of injury to the employee on duty.
The value of travel tickets for absent workers will also be covered. Similarly, the cost of repatriation
of a worker will also be borne.
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