Three phases of law on medical insurance at work in Dubai

Keren Bobker advises a worker who wants to move to a new job but his potential new employer's medical insurance policy gives him doubts.

I am considering leaving my current employer for a job in a company that is more interesting to me. But I have been sent an employment offer letter which I am not sure about. The salary is what I expected, but the company does not provide medical insurance to their staff. I thought that all companies had to arrange cover but they are denying this is the case. As this is important to me and I also don’t want to move to a company that breaks the law, can you confirm please? HB, Dubai

New rules have been introduced by Dubai Health Authority (DHA) which means that all employers must provide medical insurance for all employees, but this is being introduced in several phases. In phase one all companies with 1,000 or more staff had to have cover in place by last October. In phase two companies with 100 to 999 employees must have cover in place by the end of this month, and in the third and final phase companies with up to 100 staff must have cover in place by June 30, 2016. If HB’s new employer has fewer than 100 employees they do not yet have to provide cover but must do so in the next year, in accordance with the DHA guidelines. All company schemes, and all individual plans too, must be set up with an approved insurance company that has the DHA Health Insurance Permit, and all plans must meet, or exceed, the minimum levels of cover as specified by the DHA. Any company that does not comply with the rules by the relevant deadline will be heavily fined. All dependents and domestic staff must also have cover in place, arranged and paid for by their sponsor, by the phase three deadline.

Keren Bobker is an independent financial adviser with Holborn Assets in Dubai, with over 20 years experience. Contact her at [e-mail] Follow her on Twitter at @FinancialUAE

The advice provided in our columns does not constitute legal advice and is provided for information only. Readers are encouraged to seek appropriate independent legal advice