UAE residents who lose or resign from their jobs now benefit from a generous immigration ‘grace period’ of up to 90 days to remain in the country and arrange a new visa. However, Gulf News reports that many are discovering a hidden risk: the mandatory employer-funded health-insurance policy that underpins every residence visa often terminates long before the immigration grace period ends. Under Dubai’s Health Insurance Law and Administrative Resolution 78 of 2022, employers must keep an employee’s policy active for only 30 days after the visa is cancelled. In Abu Dhabi the rule is similar, while in the Northern Emirates the length of coverage is left to the insurer and the employer’s discretion. For workers who intend to job-hunt locally, that can leave weeks—sometimes months—without medical cover, even though they are still lawfully present in the country. Immigration lawyers say the situation is creating compliance and cost headaches for multinational HR departments running assignment programmes in the UAE. Employers that choose to extend insurance voluntarily must pay additional premiums and monitor cancellation dates manually. Employees who fail to arrange private cover risk hefty out-of-pocket expenses: a single emergency room visit in Dubai typically costs AED 1,500–3,000 before treatment. Hospitals can also refuse to treat uninsured patients unless they provide a cash deposit. Experts advise assignees whose visas are being cancelled to ask their employer or PRO to confirm the exact last day of insurance, purchase a short-term local plan if coverage lapses, and carry printed proof of insurance when applying for a new work permit. Companies should update exit-management checklists to include explicit confirmation of insurance status—especially for family members—during the grace period. While no regulatory change is imminent, brokers predict that Dubai may eventually align insurance and immigration rules to avoid gaps. Until then, global mobility teams should factor the extra cost of interim cover into severance budgets and provide clear briefing notes to departing staff.
Source: Gulf News
