In a move to enhance UAE's economy, major decisions were taken by the UAE Cabinet that could have major impact on Indians working in the UAE.
The cabinet, chaired by Vice President and Prime Minister of UAE, Sheikh Mohamed bin Al Rashed adopted a number of decisions with regards to foreign workers and visitors.
The cabinet has cleared a scheme that waives off "bank guarantees" for workers that the employers had to pay and has been replaced by a nominal annual fee.
UAE Ambassador to India, Dr Ahmed Albanna in an interview to India Today said, "We have relaxed some of the existing rules and regulations related to bank guarantees that the UAE companies submit for any individual working with the company. Therefore, bank guarantees with thousands of Dirham has been replaced by a nominal fee to enhance the traffic between UAE and India and it will enhance business economic and trade relations between the two nations."
The previous mandatory deposit of Dh 3,000 per worker is now replaced by a new insurance that cost only Dh 60 annually per worker.
With the businesses now being able to save billions of Dirham, the newly created scheme not only will secures workers' rights in the private sector and reduces the burdens on employers, it will also allow more traffic into the United Arab Emirates of foreign workers. It is one step taken by the administration to ensure "ease of doing business" which could enhance UAE's market competitiveness.
The UAE envoy highlighted that in the context of India which is a huge provider of labour and work force to UAE, these decisions would benefit both the nations. "It will provide relief to a lot of people from the high expenses and eventually the companies in UAE will also be relieved of these back guarantees that runs into millions. A lot of people will benefit positively", he said.
The new system also aims to achieve a wider coverage of the rights and entitlements of workers which would include end of service benefits, vacation allowance, overtime allowance, unpaid wages, worker's return ticket and cases of work injury, in which the insurance coverage amounts to 20,000 Dirham per worker.
Apart from this, the cabinet also decided to exempt transit passengers from all entry fees for the first 48 hours which can be extended for up to 96 hours for a fee of only Dh50. "This has been created by the Govt of UAE to encourage our people to come to UAE and experience the development and the tremendous changes that took place in UAE in the last 35 years. Relaxed rules for Indians carrying Green Card or have US visa or residency in Europe and UK. They can come directly and get visa upon arrival. The 48-hour visa fee waiver was created to enhance tourism", said Albanna.
Content Credit - India Today
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