UAE: New Workers Protection Programme Launched in SEZs in Dubai

An insurance scheme providing improved protection and benefits to workers in companies based in special economic development zones (SEZs) in Dubai has been rolled out by the Ports, Customs and Free Zone Corporation (PCFC). The Department of Planning and Development, also known as Trakhees, launched the new Workers Protection Program in partnership with the Dubai Insurance Company on 21 June 2022. The new scheme provides stronger employee protection and benefits compared to the previous bank guarantee system, according to a release. Benefits include paying workers outstanding dues when employers are unable; and covering end-of-service payments, work-related injuries, unpaid salary, and repatriation of mortal remains, among others. The PCFC’s Workers Protection Program will be available for workers in firms located in special development zones supervised by Trakhees.

The previous bank guarantee system required employers to deposit a financial guarantee of AED3,000 (US$817) for each worker upon work permit application. Employers were then refunded the amount when the work permit was cancelled or renewed.