UAE Cabinet approves new labor insurance system to replace bank guarantees for workersKWSME
In the UAE, laws have been developed to make sure every action and every process in the business world is regulated to a certain extent to maintain the environment that the government has worked so hard for. The government maintains strict checks to see if the laws are being implemented and followed or not. Amendments are made in order to cover areas that were not previously under coverage or when new situations arise as the time goes on, new business activities are approved and the population grows. It is an endless process to maintain the same environment and maintain law and order situation in a country as there is always something new that the people require.
The new system
When the UAE saw an influx of workers in search of different types jobs, whether white collar or blue collar, the government had to take steps in order to regulate the work environment so that the things remain smooth in terms of the people’s welfare.
The government has now adopted a low cost insurance system to replace the old bank guarantees system for workers, where the workers had to maintain a Dh 3,000 per worker as a guarantee. The new system requires the workers to get an insurance policy to cover their benefits, unpaid wages, return air tickets and many other requirements. The scheme will protect the workers’ rights in the UAE’s private sector and will also help reduce the burden on the companies of the private sector, further lowering their costs. The cost saving will trigger investment and quicken the investment rate. One goal of the policy is to create more ease in setting up and running a business after company setup in Dubai is complete. The business owners will find low burden of employees as an extra advantage of investing in the UAE as this will allow them to invest a larger amount. Businesses in the UAE will be able to use the freed up money for more investment. Ultimately, these changes will lead to growth of the market.
How to take advantage of the system
The new system is just the government’s way of providing ease for the workers in the UAE and their way of updating the systems that were in place. It is this upgradation from time to time that has played a major role in bringing more investment to the UAE and encouraging more people to come to UAE in search for jobs. The authorities in the UAE are always trying to stay a step ahead of authorities in other countries to attract people towards the UAE.
If you want to take advantage of the new system, you need to know every little detail about it and absorb it so that you can make the best use of it. For this, experts at KWS ME can offer you help. They are in the market and keep themselves and their clients updated with new information about the market. These experts will help you understand the new system and guide you as to its usage. The business setup consultants Dubai can also provide core business setup services. If you are new to the UAE and want to know about company setup in Dubai, KWS ME will guide you through all the processes and help you complete all the necessary documentation. Services, apart from company formation in Dubai, include product registration, visa processing and many other services that will help you setup your business.
Experts at KWS ME are providing you with solutions to your queries. Contact us today!