The Ministry of Human Resources and Emiratization (MoHRE) started an Unemployment Insurance Scheme for people working for the federal government or the private sector.
Under the Decree-Law on Unemployment Insurance Scheme, an insured person is obligated to get cash compensation if they lose their job and cannot find new employment within a set time frame.
The government says that the new system will make a “social security framework that ensures that Emiratis and local employees can live comfortably while reducing business risks” during times when there aren’t enough jobs. We also want to create a knowledge-based economy that is world-class and competitive on a global scale. For its part, this strategy “also aspires to increase the competitiveness of the UAE residents, boost the attractiveness of the UAE’s employment market for the top international and national talents,” as its creators put it.
The employee would get a monthly payment equal to 60% of their subscription income, up to a maximum of AED20,000, for up to three months following the date of unemployment.
According to Dr Abdulrahman Al Awar, Minister of Human Resources and Emiratisation, “The directive symbolises the UAE government’s approach in growing the business climate and enhancing the UAE’s position as a preferred area to work and live.”
People worldwide have moved to the United Arab Emirates (UAE) because of its excellent infrastructure and high quality of life.
He explained that the United Arab Emirates highly values protecting human dignity. This decree strengthens the laws that protect the rights of all employees in the country, whether Emirati or from another country. It provides them with the best possible means of care at every level. Our wise leaders have prioritised this, which will help us reach our end objective of a more stable and prosperous society.
The new law applies to all federal government and private sector workers in the UAE, except for investors (who own the businesses where they work), domestic helpers, part-time workers, minors under the age of 18, and retired people who have started a new job while still receiving a pension.
The minimum number of months an employee must be subscribed to get compensation under the law is 12. The person must also have been fired for “cause,” as defined by the person’s employment contract, the Federal Human Resources Law, and any other applicable laws.
There can be no dishonesty involved in the compensation claim. A violation of the Law on Regulating Labour Relations or any other law in the country could result in fines and jail time for both the firm and the insured worker.
Lastly, the payments will end if the employee accepts a new post within the compensation term.
The UAE Cabinet and the UAE Central Bank work together to make rules for insurance companies to follow when giving unemployment insurance. Service providers are insurance agencies that the UAE Central Bank has approved. The insured person can talk to these agencies about getting more benefits. In addition, the UAE Cabinet may hire private firms or other government departments to help with unemployment payments.
The compensation awarded to an insured under this Decree-Law shall be in addition to any other benefits to which the insured may be entitled under any other law in force in the United Arab Emirates at the time of the insured’s injury.