UAE and Nepal strengthen labor protections with new 2025 agreement safeguarding migrant workers' rights..ChinaDaily
Nepal and UAE Key Protections and Recruitment Reforms
The new agreement mandates that all recruitment costs—including recruitment agency fees, airfare, visa, medical tests, and insurance—be borne by UAE employers. It replaces the 2007 MoU and introduces standardized employment contracts specifying wages, benefits, accommodation, and working conditions.
A central feature requires digital contracts with barcoded identifiers and direct hiring through licensed agencies, eliminating unregulated brokers. A joint technical oversight committee will conduct quarterly reviews and handle dispute resolution mechanisms.
Wage Guarantees and Gratuity Rights
The UAE commits to guaranteeing end-of-service gratuity and minimum guaranteed wages aligned with the new Nepal–UAE pay scale: unskilled workers must receive at least 1,400 AED per month (including food allowance), with scaled rates for semi-skilled and skilled labor.
These protections ensure that workers facing termination or employer defaults are eligible for legal redress and expedited repatriation without financial burden.
Strategic Diplomacy and Labor Outreach
During the UAE Foreign Minister’s working visit, high-level discussions with Nepalese leaders emphasized broadening bilateral cooperation beyond remittances and recruitment—toward investment in sustainable development, energy, and infrastructure.
Sheikh Abdullah bin Zayed Al Nayhan’s talks with Prime Minister Oli and President Paudel underscored the UAE’s interest in deepening ties as part of its pivot toward socially responsible Gulf engagement. Details of the visit are available in the official UAE Ministry of Foreign Affairs statement.
Labor Welfare Highlighted at Workers’ Day Event
In Abu Dhabi, the Nepali Embassy used International Workers’ Day 2025 to launch a major outreach initiative, offering legal aid, welfare assistance, and awareness campaigns. The embassy cited that over 600,000 Nepali expatriates reside in the UAE and pledged stronger cooperation with employers, agencies, and officials.
Impact on Nepal’s Economy and Diaspora Policy
Nepal relies heavily on remittances—UAE contributes billions annually, accounting for around 24% of Nepal’s GDP. This labor framework aims to secure that income while limiting human and financial cost to workers and families.
The updated MoU also supports Nepal’s new policy to open a consulate general in Dubai, strengthening consular access and legal support for its growing diaspora in the Gulf. More details on Nepal’s migration policy can be found in the Nepal Government’s official migration update.
Migration Trends and Future Outlook
Recent data shows that over 530,000 Nepali youth migrated for work in just eight months of FY 2081/82, with the UAE accounting for over 30% of destinations. Continued reforms are expected to shape safer pathways and more equitable labor frameworks.
Looking Ahead: Next Steps in Bilateral Engagement
Both governments are planning joint exchanges and investment forums focused on vocational training, renewable energy collaboration, urban development, and tourism infrastructure aligned with Nepal’s Vision 2040 plan.
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Analysts note this marks a shift from purely remittance-driven ties to broader strategic diplomacy with regional stability and shared growth as goals.
