UAE
UAE mandates worker insurance for new private sector hires
The policy, part of the Workers' Protection Programme, replaces the AED 3,000 bank guarantee previously required from employers for each new employee.
By 19Network Editorial Team · Jul 25, 2026 · 2 min read
UAE private sector companies must now secure a collective insurance policy for all new employees at the time of hiring. This new system is designed to protect worker entitlements and costs AED 120 per employee annually.
UAE private sector companies on the mainland are now required to purchase a group insurance policy for all new staff, a move that replaces the previous system of lodging a substantial bank guarantee for each worker. The policy is designed to safeguard employee benefits and reduce the financial burden on employers. This system, managed by the Ministry of Human Resources and Emiratisation (MoHRE), provides a safety net for employees’ end-of-service gratuity, unpaid wages, and other entitlements. ## What changed The previous system required employers to deposit an AED 3,000 bank guarantee for each employee. This has been replaced by a mandatory insurance scheme known as the Workers’ Protection Programme. The new insurance policy costs AED 120 per employee, per year. According to MoHRE, the insurance coverage provides up to AED 20,000 per worker to cover: - End-of-service benefits (gratuity) - Unpaid wages - The cost of a return flight ticket to the employee's home country - Work injury compensation This change was implemented to create a more efficient and lower-cost system for securing workers' rights. ## Who is affected The mandate applies to all private sector companies operating…