DUBAI 21 June 2018: The UAE Cabinet has announced changes to the country’s visa system and employment regulations, including the introduction of an insurance scheme replacing the existing bank guarantees system.
However, it is unclear if the free zone authorities will modify their regulations regarding bank guarantees or not, according to immigration specialists firm, Fragomen.
It said the changes are in line with the ongoing reforms and the last month’s announcement on the issuance of new visas with a validity of up to ten years for foreign nationals in the science and research fields.
Worker’s insurance scheme
For businesses located in the ‘mainland’ and registered with the Ministry of Human Resources and Emiratisation, the existing bank guarantee system that typically requires an employer to deposit a fixed amount of Dh3,000 against every work permit application, will be replaced by an insurance scheme that will cost only Dh60 annually per worker.
The new scheme will provide coverage of up to Dh20,000 in case of unpaid wages and/or various allowances, return ticket and in case of work injuries. Moreover, employers will be able to retrieve earlier deposited bank guarantees. Details for implementation of these provisions are expected to be published in the coming weeks.
Extended residency for university-graduates under parents’ sponsorship: New legislation is under review that will allow dependents under parents’ sponsorship to extend their residency period for up to two years after having completed university studies. Currently, the sponsorship of sons above the age of 18 is restricted, unless they are attending a higher education program.
New transit visa conditions: The Cabinet approved a waiver of entry fees for the first 48 hours of a visit visa for transit with the possibility to pay only Dh50 for availing of the full 96-hour visa. Currently, visas for transit are issued for up to 96 hours for a fee of Dh200-300, depending on the visa-sponsoring airline, under the condition that the minimum time between the two trips is eight hours.
Over-stayers, new temporary visa and immigration ban waiver: The announcement includes provisions for over-stayers, waiver from immigration bans and the possibility of a six-month temporary visa for job seekers. More information along with the specific details will follow.