The situation
The Cabinet of the United Arab Emirates has announced that an insurance scheme will replace the bank guarantee system in the mainland, which will continue to ensure that employers can cover the costs of foreign employees’ unforeseen circumstances. The effective date of this policy is not yet clear.
A closer look
- Insurance scheme details. The new insurance scheme will provide coverage of up to AED 20,000 per employer in case of unpaid wages and/or various allowances, return tickets and work-related injuries.
- Previously deposited funds. Employers will be able to retrieve the funds deposited with the Ministry of Human Resources and Emiratisation (MOHRE) under the bank guarantee plan.
- Cost. The new insurance scheme will only cost employers AED 60 annually per worker.
Background
Existing regulations require companies in mainland UAE that are registered with the MOHRE to deposit AED 3,000 for each work permit application as a bank guarantee (exemptions exist for the employment of skilled workers and depending on the company category) which covers similar situations that the insurance scheme will cover.
Impact
The new scheme may ease monetary burdens for companies employing foreign nationals.
Looking ahead
Fragomen will provide updates on further details of the new law as they are released by the relevant authorities, including information on whether free zone authorities will modify their regulations regarding bank schemes to match this change in the mainland.
This alert is for informational purposes only. If you have any questions, please contact the global immigration professional with whom you work at Fragomen or send an email to [email protected].
Explore more at Fragomen
Media mentions
Senior Manager William Diaz outlines the US visa options available to the games industry for bringing international talent to the United States, including O-1, L-1 and E-2.
Media mentions
Partner Jo Antoons and Manager Andreia Ghimis explain how businesses can navigate Europe’s new ETIAS pre-travel authorisation and avoid disruptions.
Media mentions
Partner Louise Haycock and Associate Jennifer Gray analyse the barriers and opportunities for overseas creatives navigating the UK’s immigration system.
Blog post
Associate Chloe Evans outlines eligibility criteria for individuals seeking British citizenship based on ancestral ties.
Fragomen news
Fragomen’s Semiconductor Industry Group publishes the next installment of its “Voice of the Industry” Q&A series, featuring Shari Liss, Vice President of Global Workforce Development and Initiatives at SEMI.
Media mentions
Partner Karolina Schiffter highlights how Poland’s tightened visa system affects foreign hiring and the challenges companies face in navigating it.
Media mentions
Partner Carl Hampe provides insight on the impact of the $100,000 H-1B fee and the US Chamber of Commerce’s related lawsuit.
Awards
Fragomen was honoured with the “Best Partnership Between a Corporate Organization and a Service Provider” EMMA at FEM's 2025 EMEA Summit.
Media mentions
Partner Rachel Beardsley highlights how H-2A visa strategies can help sustain a skilled US agricultural workforce.
Blog post
Director Willys Mac’Olale discusses how intra-African mobility can unlock the continent’s economic and social potential by promoting free movement, fostering integration and development.
Blog post
Immigration Director Adriana Martínez Garro explains the residency process in Costa Rica for families relocating with dependents, outlining key legal considerations and steps for securing status.
Media mentions
Fragomen contributed data showing how UK visa and health surcharge costs compare with other leading research nations.
Media mentions
Senior Manager William Diaz outlines the US visa options available to the games industry for bringing international talent to the United States, including O-1, L-1 and E-2.
Media mentions
Partner Jo Antoons and Manager Andreia Ghimis explain how businesses can navigate Europe’s new ETIAS pre-travel authorisation and avoid disruptions.
Media mentions
Partner Louise Haycock and Associate Jennifer Gray analyse the barriers and opportunities for overseas creatives navigating the UK’s immigration system.
Blog post
Associate Chloe Evans outlines eligibility criteria for individuals seeking British citizenship based on ancestral ties.
Fragomen news
Fragomen’s Semiconductor Industry Group publishes the next installment of its “Voice of the Industry” Q&A series, featuring Shari Liss, Vice President of Global Workforce Development and Initiatives at SEMI.
Media mentions
Partner Karolina Schiffter highlights how Poland’s tightened visa system affects foreign hiring and the challenges companies face in navigating it.
Media mentions
Partner Carl Hampe provides insight on the impact of the $100,000 H-1B fee and the US Chamber of Commerce’s related lawsuit.
Awards
Fragomen was honoured with the “Best Partnership Between a Corporate Organization and a Service Provider” EMMA at FEM's 2025 EMEA Summit.
Media mentions
Partner Rachel Beardsley highlights how H-2A visa strategies can help sustain a skilled US agricultural workforce.
Blog post
Director Willys Mac’Olale discusses how intra-African mobility can unlock the continent’s economic and social potential by promoting free movement, fostering integration and development.
Blog post
Immigration Director Adriana Martínez Garro explains the residency process in Costa Rica for families relocating with dependents, outlining key legal considerations and steps for securing status.
Media mentions
Fragomen contributed data showing how UK visa and health surcharge costs compare with other leading research nations.