A system aimed at providing professional stability for workers in the country

AED 400 fine for refraining from participating in "unemployment insurance"

The monthly premium ranges between AED 5 and AED 10. From the source

The Ministry of Human Resources and Emiratisation (MOHRE) reported that a worker or employee in the public and private sectors has been subjected to criminal proceedings for not complying with the "unemployment insurance" scheme, with a fine of AED 400, or for not complying with the payment of premiums after participating in the scheme for a period of three months, with a fine of AED 200.

The head of the labor complaints department at the ministry, Dr. Ahmed Al-Qara, said in media statements: «The launch of the unemployment insurance system comes in implementation of the Cabinet's decision on the system issued based on Federal Decree Law No. 13 of 2022, regarding unemployment insurance, and the system aims to provide protection cover for workers in the (private) and (federal government) sectors, by compensating them with cash amounts for a specific period not exceeding three months for each claim, in the event that they lose work as a result of Termination of their services for reasons beyond their control."

The system also aims to provide professional stability for all workers in the UAE by creating a safe, simple and accessible umbrella for all, at a small cost, that supports the careers of workers in the country, and ensures their living stability, relying on innovative mechanisms that do not incur additional costs for employers, and provide a balance in the labor market that allows achieving the strategic objectives of the country and supports the continuity of economic activities.

As for the categories excluded from the mandatory participation in the system, the continent explained that the unemployment insurance system is mandatory for all workers in the private and federal government sectors, citizens and residents, except for five categories, which are the categories excluded from the system, namely: the category of investors, domestic workers, temporary contract workers, juveniles under 18 years old, retirees who receive a pension and joined a new job, in addition to that it does not include workers in local government authorities, and therefore workers in The two sectors participate in the system starting from the first of next January (2023).

He stressed that workers or employees are obligated to participate in the system at their own risk, and the role of the employer is to guide and motivate them to participate in the system only, pointing out that penal procedures have been set on the worker in the event that he does not participate in the system, as in the event of non-compliance with the subscription, a fine of 400 dirhams will be imposed on the worker, and if the worker participates and does not commit to paying the insurance premiums for a period of three months, a fine of 200 dirhams will be imposed on him.

Al-Qarah added that there is a state of optimism with the great response of workers and employees with participation in the system and commitment to pay installments, and penal procedures are the last axes that can be looked at.

He stated that the unemployment insurance system is divided into two categories: the first includes workers and employees whose basic salary is 16,60 dirhams or less, and the value of the monthly insurance premium for this category is five dirhams per month, at 16 dirhams annually, and the second category, whose monthly salary is 10,120 dirhams or more, the value of the insurance premium is <> dirhams per month, at <> dirhams annually, and therefore the value of the subscription is commensurate with all categories, whether the workers are from the first category or Second, where it is within the framework of their financial capacity.

The continent continued that «in the event that any worker or employee loses his work for reasons beyond his control, the insurance coverage for the first category is 10,20 dirhams per month as a maximum, and the second category is 60,12 dirhams, which is the coverage that the worker will receive in the event of losing his job or work for reasons beyond his control, and thus the coverage represents <>% of the basic salary that they subscribed to, for a period of three months from the date of unemployment, and if the worker or employee is repeatedly unemployed from his work, it He has access to insurance coverage up to a maximum of <> times throughout his career."

He explained that after participating in the scheme and complying with the conditions of entitlement to insurance coverage, the worker receives insurance coverage after terminating his service for a reason beyond his control, provided that he did not submit his resignation, and if he joined another job, he is entitled to coverage upon termination of his service from the new job for reasons beyond his control.

He pointed out that the Ministry recently signed an agreement with the Dubai Insurance Company, which represents an insurance complex that includes nine national insurance companies, to provide insurance policy for employees and workers against their unemployment, and Dubai Insurance Company is working to provide subscription channels, starting from the first of next January. Among the channels for subscription and payment of insurance premiums are: the website, the smart application of the insurance complex, smart applications for banks operating in the country, exchange companies, self-service kiosks, businessmen websites, and telecommunications companies operating in the country, including du and Etisalat, and via direct text messages.

The unemployment insurance system is mandatory for employees in the private and federal government sectors, both citizens and residents.

How to subscribe

The Head of the Labour Complaints Section at the Ministry of Human Resources and Emiratisation, Dr. Ahmed Al-Qara, stated that the worker or employee can enter the required papers on any of the specified subscription channels, and then the system determines for the person the category in which he can subscribe, and then he is chosen between ways to pay the subscription, either monthly, quarterly, semi-annually, or once a year, then he receives a link to pay the value of the installment, or according to the channel through which he subscribes to the system, pointing out that the value of the document Insurance is subject to VAT.

Conditions for entitlement to compensation

1- After 12 months from the date of subscription.

2- The reason for terminating the labor relationship is not due to the worker (such as resignation or as a disciplinary measure).

3. In a fixed-term contract, if the termination of the relationship is at the worker's will, he shall not be entitled to coverage against unemployment from work.