Ministerial Decision No. 318/2022

Concerning Bank Guarantees and Employee Protection Insurance

The Minister of Human Resources and Emiratisation,

Pursuant to the perusal of Federal Law No. 1/1972 on the Competences of the Ministries and the Powers of the Ministers and its amendments;

Federal Decree-Law No. 33/2021 concerning the Regulation of Labour Relations and its Implementing Regulation;

Cabinet Decision No. 21/2020 concerning Service Fees and Fines at the Ministry of Human Resources and Emiratisation;

Cabinet Decision No. 18/2022 concerning the Classification of private sector Establishments that are Subject to the Law concerning the Regulation of Labour Relations;

Cabinet Decision No. 37/2022 amending Some Provisions of Cabinet Decision No. 21/2020 concerning Service Fees and Fines at the Ministry of Human Resources;

Cabinet Decision No. 46/2022 concerning the Formation of the Collective Labour Disputes Committee; and

Ministerial Decision No. 47/2022 concerning the Procedures of Labour Disputes and Complaints,

Issued the following Decision:

Article 1

Pursuant to Article (8) of the aforementioned Cabinet Decision No. 18/2022, the Establishments shall undertake either to provide an insurance policy or a bank guarantee equal to no less than AED 3000 for each Employee, as follows:

a- First option: An Employee shall be insured in accordance with the procedures prescribed by the guide issued by the Undersecretary of Human Resources Affairs in this regard.

b- Second Option: A Bank guarantee shall be paid through any of the banks operating in the State, provided that it is valid for one year from the date of its issuance. It shall be automatically renewable, and be paid at the Ministry's request, without any other restrictions.

Article 2

Subject to the provisions of Article (7) of the aforementioned Cabinet Decision No. 46/2022, and Article (12) of the aforementioned Ministerial Decision No. 47/2022, in respect of the two options referred to in Article (1) above, the Ministry may choose either the insurance coverage, or the liquidation of the bank guarantee, or the deduction of any amounts therefrom, in the following cases:

a- Payment of the expenses for repatriation of an Employee to his country of origin or any other place agreed upon by the Employee and the Employer.

b- Payment of the amounts acknowledged before the Ministry, by the Employer or his representative, as entitlements of the Employee.

c- Issuance of a judgment, by any of the UAE courts, to deliver the Employee's entitlements thereto.

d- Existence of a claim raised by the concerned authorities in the State, to reimburse expenses incurred by said authorities for repatriation of an Employee to his country of origin or any other place agreed upon between the Employee and the Employer in case of Employees covered by the bank guarantee in the Establishment. As for Employees who are covered by insurance, they shall be subject to the provisions of their insurance policy.

2- In all cases, it shall be the Employer's responsibility to reimburse the sums paid or complete the sum of the bank guarantee for the Employees.

Article 3

a- In the event of choosing the second option from Article (1) above, the Employer may submit a request to reclaim the Employee’s bank guarantee or the remainder of such guarantee, in the following cases:

1- Cancellation of the Employee's work permit and proving his departure from the State.

2- Employee’s death and provision of an evidence of the body's repatriation or burial in the State.

3- The Employee’s transfer to a work for a new Employer.

4- Any other cases in which the Employer provides a proof of cancellation of the Employee’s work permit and the payment of entitlements due to the Employee.

b- The Ministry may refuse to reimburse the bank guarantee to the Employer in the following cases:

1- If the Employer is a party to a Collective Labour Dispute, until the Employee’s entitlements are paid.

2- If it is established that there are due fines that are owed by the Establishment or in the event that work permits thereto have been suspended.

Article 4

The Undersecretary of Human Resources Affairs at the Ministry shall issue a guide to the procedures, mechanisms and forms necessary for the implementation of the present Decision.

Article 5

The present Decision shall be published in the Official Gazette and shall come into force from the date of its issuance.

Issued on 27/06/2022

Dr. Abdul Rahman Abdul Mannan Al Awar

Minister of Human Resources and Emiratisation

The present Law was published in the Official Gazette of the United Arab Emirates, issue No. 731 dated 15/07/2022, p. 105.