The UAE plans to bring a new end-of-service benefits scheme for workers in the private sector and free zones in the country, a Wam news agency report said.

 

The decision was taken at a cabinet meeting on Monday chaired by His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice President, Prime Minister and Ruler of Dubai.

 

HH Sheikh Mohammed bin Rashid Al Maktoum said: “During the meeting, we approved an optional system for end-of-service gratuities for private sector and free zones employees. The system is optional for employers to join, and includes establishing private sector investments and savings funds supervised by Securities and Commodities Authority in coordination with the Ministry of Human Resources and Emiratization.”

 

His Highness added that through these funds, employees can invest and save their end-of-service gratuities according to various investment options. 

 

“The aim is to safeguard workers' savings, which constitute the end of service gratuities, and to ensure that they are safely invested in order to guarantee their rights and to achieve the stability of their families. Also, government sector employees can participate in the system, for savings and investment purposes.”

 

His Highness said the cabinet also approved a new rewards and incentives system for the employees of the Federal Government, within three categories: employee's outstanding annual performance, exceptional achievements at the entity level, or employee’s contribution to a national achievement for the nation. "The goal is to ensure a flexible reward system that enhance the competitiveness and achievement of our federal government cadres,” he said.

 

The cabinet approved the establishment of the Federal Regulatory Bureau for Electricity and Water. The bureau aims at regulating the electricity and water trade in the UAE and abroad, in addition to regulating the production, transmission and distribution of electricity and water in the country. The bureau will work under the Ministry of Energy and Infrastructure.

 

His Highness Sheikh Mohammed concluded: “As part of our continuous development of federal legislative system, the UAE Cabinet today adopted 11 new federal laws, including the new E-commerce law; new law regulating the media sector; Reproductive Health law; Space Sector Regulation law; Human Genome use law and other socio-economic, health and technological law. The aim is to strengthen the legislative environment in the UAE and promote social stability, economic growth and better quality of life.”