Private sector employers in the UAE must obtain a Worker Protection Insurance policy for every employee before securing a work permit, under rules set by the Ministry of Human Resources and Emiratisation (MoHRE).
Under the Worker Protection Insurance scheme, employees are covered for financial entitlements, including unpaid wages of up to Dh20,000 for up to 30 months if an employer defaults. The scheme offers four insurance packages with annual premiums ranging from Dh40 to Dh100, depending on the worker category, and also covers the cost of repatriating a worker's remains in the event of death.
The Ministry of Human Resources and Emiratisation (MoHRE) has issued a guidance package outlining employers' obligations and employees' rights under UAE labour law.
Employer responsibilities:
- Bear all recruitment, government, guarantee and insurance costs.
- Provide basic training and explain employees' contractual rights and obligations.
- Pay salaries on time through the Wage Protection System (WPS).
Employee rights:
- 30 days of paid annual leave after one year of service.
- 60 days of maternity leave.
- Up to 90 days of sick leave.
- Parental, bereavement and study leave.
- End-of-service gratuity for eligible expatriate workers.
- Employers cannot withhold employees' passports or official documents.
- Employees are entitled to a free employment certificate on request.
Emiratisation incentives:
Compliant companies that exceed Emiratisation targets may receive first-category status and up to 80% discounts on selected ministry services.
Labour violations:
11 labour violations, including delayed salaries and fraudulent Emiratisation, can result in administrative penalties.
Salary payment deadline:
Salaries must be paid within 15 days of the due date, or employers may face WPS-related work permit restrictions.
