UAE Cabinet meet: Mandatory health insurance for private employees soon

The UAE’s cabinet in its latest meeting, approved a slew of decisions chief among them – a new structure for the Ministry of Human Resources and Emiratisation (MoHRE), mandatory health insurance to be applicable for all private sector employees, and the National Biofuels Policy.

Sheikh Mohammed bin Rashid Al Maktoum, Vice President, Prime Minister and Ruler of Dubai, chaired the UAE Cabinet meeting at Qasr Al Watan, Abu Dhabi, reported state news agency WAM.

Sheikh Mohammed said, “I chaired the UAE Cabinet meeting at Qasr Al Watan in Abu Dhabi. We reviewed the major advancements in the country’s labour market…Today, we approved a new structure for the Ministry of Human Resources and Emiratisation, including establishing a coordinating council for the labour market in the UAE, to maintain its stability and enhance its competitiveness.”

“The workforce is the real engine of the economy, and monitoring their concerns and protecting their rights are essential elements for advancing our national economy.”

Supporting the labour market

The Cabinet was briefed on the efforts of the MoHRE, alongside various federal, local, and private entities, aimed at supporting labour market stability and addressing disputes across the UAE.

The initiatives and mechanisms implemented by the UAE government in 2023 led to a notable 75 percent reduction in labour disputes compared to 2022, while over 98 percent of labour disputes were amicably settled, up to March 2024.

Additionally, the “Collective Labor Dispute Committee” successfully resolved disputes totaling over Dhs300m.

Sheikh Mohammed emphasised the UAE’s competitive labour market. He noted, “The UAE has ranked first globally in the lack of labour disputes indicator, according to the Global Competitiveness Report, first globally in the ability to attracting talent, as indicated by the Prosperity Index, and third globally in the digital skills.”

Health insurance system for private sector employees

During the meeting, the Cabinet approved the establishment of a health insurance system for registered employees in private sector, and the domestic workers who do not have existing health insurance coverage.

According to the new system, all employers in private sector companies along with employers of domestic workers in the UAE are required to pay for the health insurance coverage for their registered workers upon issuance or renewal of their residency permits.

This decision will be enforced mandatorily starting January 1, 2025.

MoHRE will be responsible for carrying out essential awareness campaigns and programmes regarding this concern.

Establishing the Coordinating Council for Labour Market

Maintaining the focus on improving the labout market, the Cabinet approved establishing the ‘Coordinating Council for Labour Market’ in the UAE, chaired by the Minister of Human Resources and Emiratisation, reported WAM.

The council will be responsible for reviewing legislations, strategies, and initiatives related to private sector companies, as well as their registered workforce.

It will work on aligning federal and local regulations, laws, and procedures related to the labour market to achieve coordination and integration nationwide.

UAE National Policy on Biofuels

The UAE Cabinet also approved a national policy on biofuels encouraging the production and consumption of locally produced biofuels.

واعتمدنا اليوم في مجلس الوزراء سياسة وطنية لتداول الوقود الحيوي وتصنيعه في الدولة بما يدعم توجهاتنا في توفير مصادر طاقة نظيفة ومستدامة ومنخفضة الكربون … كما اعتمدنا اليوم أيضاً تعديل اللائحة التنفيذية للقانون الاتحادي بشأن الجنسية وجواز السفر.. وأقررنا جواز تمديد مدة سريان جواز… pic.twitter.com/qguQ2MjiOy

— HH Sheikh Mohammed (@HHShkMohd) March 18, 2024

The new policy on biofuels aims to develop regulations and controls to oversee the distribution of biofuels, establish standards governing the production and utilisation of biofuels and implement criteria and mandates for biofuel production within the country.

It aims to organise the biofuel trading activities in the country, establish standardised specifications for biofuel, manage its production and trading, and contribute to environmental protection and public health, fostering sustainable development, and reducing the effects of climate change.