Workmen's Compensation in the UAE: A Guide for Employers
What UAE labour law makes you pay when a worker is injured, how insurance covers it, and what insurers need to quote.
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Every UAE employer is responsible for its workers if they're injured at work or fall ill because of their job, and the law sets out exactly what you must pay. This guide explains those obligations, how workmen's compensation insurance covers them, and what insurers need to quote. It's written by Al Berwaz Insurance Brokers, licensed by the Central Bank of the UAE (Registration No. 081).
Is workmen's compensation insurance mandatory in the UAE?
The insurance itself isn't required by federal law, but the liability is. Under Article 37 of Federal Decree-Law No. 33 of 2021 Regulating Labour Relations, the employer must pay for a worker's treatment and compensation after a work injury or occupational disease, whether or not it has insurance. Workmen's compensation insurance passes that cost to an insurer.
In practice, many clients and main contractors ask for it before awarding a contract or tender, so most companies with site, warehouse or manual workers carry it.
What counts as a work injury?
Under the law, a work injury is any injury that arises from and happens during the worker's job, plus any occupational disease listed by Cabinet resolution. An accident on the way to or from work also counts, as long as the worker didn't stop or take a detour from the usual route.
What the law says you must pay
| Situation | Employer's obligation |
|---|---|
| Treatment | All medical costs until the worker recovers or a disability is confirmed, including hospital stay, surgery, tests, medicines, prosthetics and transport to treatment |
| Time off work | Full wage during treatment for up to 6 months, then half wage for up to another 6 months, or until recovery, confirmed disability or death |
| Death | 24 months of the worker's basic wage, minimum AED 18,000 and maximum AED 200,000, paid to the family on top of end-of-service gratuity and other dues |
| Permanent disability | Compensation set by the disability tables in Cabinet Resolution No. 33 of 2022, with partial disability paid as a percentage depending on the injury |
When compensation isn't due
Under Article 38, the worker isn't entitled to compensation if the authorities find that:
- the worker injured himself deliberately
- the injury happened under the influence of alcohol or drugs
- the worker deliberately broke safety instructions displayed at the workplace
- the injury resulted from the worker's wilful misconduct
- the worker refused, without good reason, the examination or treatment ordered by the medical authority
Report the injury within 48 hours
Cabinet Resolution No. 33 of 2022 requires the employer to report a work injury to the medical authority and to the Ministry of Human Resources and Emiratisation (MOHRE) within 48 hours, with the worker's details and a short description of what happened and the treatment given. Tell your insurer at the same time, since late notice can complicate a claim.
Workmen's compensation, employer's liability and group medical
| Cover | What it does |
|---|---|
| Workmen's compensation | Pays what the labour law requires after a work injury: treatment, wages during time off, and death or disability compensation |
| Employer's liability | Covers claims beyond that, for example if an injured worker sues the company for negligence. Usually added to the same policy |
| Group medical | Pays for everyday healthcare for staff and their families. It isn't designed to pay wages or death and disability compensation after a work injury |
How premiums are calculated
Workmen's compensation is priced mainly on your payroll. Insurers look at:
- total annual wages for each type of work
- how risky each type of work is (office staff cost far less to insure than site workers)
- the number of employees
- the employer's liability limit you choose
- your claims history
Because the premium follows wages, declare them accurately. Some policies are adjusted at the end of the year against actual wages paid.
What to prepare for a quote
- Staff numbers by job type: for example office, sales, drivers and site or warehouse workers.
- Wages: total annual wages for each group.
- Your activity: what your business does and where staff work, including sites outside your premises.
- Claims history: any work injuries in the last three years.
- Current policy: your policy schedule, if you already have cover.
Why use a broker?
An insurer can only offer its own rates and wording. A broker compares insurers' rates for each type of work, checks that your limits match what your contracts and tenders require, and helps you report and follow up claims. Broker commission is built into the insurer's premium, so using a broker doesn't add to your cost.
Got questions? We've got answers
Quick answers to other questions employers ask us about workmen's compensation in the UAE.
Ask Us a QuestionAre accidents on the way to or from work covered?
Under UAE labour law, yes, as long as the worker went directly between home and work without stopping or changing route. Check that your policy wording matches the law's definition.
Do we need to insure office staff too?
The legal liability applies to every employee, including office staff. Their risk is lower, so they cost much less to insure than site or manual workers, and most companies cover the whole workforce on one policy.
Does our policy cover our subcontractors' workers?
Usually not. Each employer is responsible for its own workers, so main contractors commonly ask subcontractors to show their own workmen's compensation cover before starting work on site.
Is death compensation paid on top of end-of-service gratuity?
Yes. Article 37 of the labour law keeps the family's right to the worker's end-of-service gratuity and any other dues, in addition to the work-injury compensation.
✓ Serving Abu Dhabi businesses since 1995
✓ Licensed by the Central Bank of the UAE (Reg. No. 081)
✓ Workmen's compensation and employer's liability compared across leading UAE insurers
Sources:Federal Decree-Law No. 33 of 2021 Regulating Labour Relations (Articles 1, 37 and 38) · Executive Regulation, Cabinet Resolution No. 1 of 2022 (Article 23) · Cabinet Resolution No. 33 of 2022 Concerning Work Injuries and Occupational Diseases. Checked October 2026.
This guide is general information, not legal advice. Cover is subject to the policy terms, conditions and exclusions of the issuing insurer.