Post-Visa Cancellation: 30 Days of Mandatory Insurance

In the UAE, when an employee leaves their job and their visa is canceled, the employer is required by law to provide 30 days of health insurance coverage after the visa cancellation. This ensures that employees are protected during the transition period, whether they are planning to leave the country or move to a new employer.

New Employer’s Responsibility: Transferring Sponsorship and Insurance

Once an employee’s sponsorship transfers to a new employer, the new employer is legally responsible for providing health insurance coverage. The process involves:

1. Applying for the new visa: As part of the sponsorship process, the new employer must secure health insurance for the employee.
2. Notifying the old employer: Employees should inform their previous employer about the updated sponsorship and insurance, enabling the old employer to cancel their policy.

Why Continuous Insurance Coverage Matters

Ensuring uninterrupted health insurance during job transitions is critical for several reasons:

1. Financial Protection: Employees avoid unexpected medical expenses during the interim.
2. Regulatory Compliance: Employers meet UAE labor and health insurance requirements.
3. Employee Welfare: Providing seamless coverage builds trust and supports employee well-being.

Step-by-Step Guidelines for Employees and Employers

For Employees:

1. Inform your previous employer about your new visa and insurance coverage promptly.
2. Confirm with your new employer that your health insurance is active upon visa sponsorship transfer.

For Employers:

1. Ensure you arrange health insurance for new employees as soon as their visa sponsorship starts.
2. Collaborate with the previous employer to ensure the cancellation of old insurance policies, avoiding unnecessary overlaps.

Conclusion

Adhering to UAE regulations on health insurance during job transitions is vital for both employees and employers. A smooth transfer of health insurance protects employees, ensures compliance with labor laws, and fosters a responsible and supportive work environment.

Employers should prioritize clear communication and timely action to maintain uninterrupted coverage, while employees should stay informed about their rights and responsibilities.

By following these steps, all parties can navigate job transitions effectively and in full compliance with UAE regulations.