Private sector employers in the UAE will be required to purchase worker insurance for every new hire before obtaining a work permit, reinforcing the country's efforts to strengthen labour protections and ensure employees receive their financial entitlements.
Under the Ministry of Human Resources and Emiratisation's (MoHRE) Worker Protection Insurance scheme, employers must secure an insurance policy that covers unpaid wages of up to Dh20,000 over a 30-month period if an employer fails to meet its legal obligations.
The ministry's guidance package, which outlines employers' responsibilities and workers' rights under UAE labour law, introduces four insurance packages tailored to different categories of employees and businesses. Annual premiums range from Dh40 to Dh100, with policies also covering the cost of repatriating a worker's remains in the event of death.
The guidance is designed to improve compliance with labour regulations while supporting a stable and transparent employment environment.
Beyond insurance, the ministry reaffirmed that employers are responsible for all recruitment-related expenses, including government fees, guarantees and insurance costs. Employers must also provide basic job-related training, ensure employees understand the terms of their employment contracts and process salary payments through the Wage Protection System (WPS).
The guidance also reiterates statutory employment benefits available to workers. Employees who complete one year of service are entitled to 30 days of paid annual leave, while other protections include 60 days of maternity leave, up to 90 days of sick leave, parental leave, bereavement leave, study leave and end-of-service gratuity for expatriate workers after one year of continuous employment.
Employers are prohibited from retaining employees' passports or official documents and must provide a certificate of employment free of charge upon request. The certificate should include the employee's final salary and reason for leaving, without containing information that could adversely affect future employment opportunities.
The ministry also used the guidance to reinforce its Emiratisation framework. Companies that exceed their Emiratisation targets while remaining fully compliant with labour regulations may qualify for first-category status and membership of the Emiratisation Partners Club, enabling them to receive discounts of up to 80% on selected ministry services.
At the same time, MoHRE warned employers against 11 labour violations that could trigger administrative penalties. These include delayed wage payments, fraudulent Emiratisation practices, operating non-genuine businesses, misuse of electronic ministry services, submitting false information, failing to renew mandatory documents and non-compliance with obligations relating to Emirati employment and training.
The ministry also reiterated that employers must pay salaries within 15 days of their due date. Companies that fail to comply face escalating enforcement under the Wage Protection System, beginning with electronic warnings and progressing to restrictions on obtaining new work permits if violations persist.
The measures form part of the UAE's broader strategy to strengthen worker protections, improve labour market compliance and promote responsible employment practices across the private sector.