Stock office workers staff Dubai
Picture used for illustrative purposes only. Image Credit: Ahmed Ramzan/Gulf News

Dubai: Details of a new Unemployment Insurance Scheme were announced today, which will help employees receive compensation, in case they lose their jobs. It applies to all employees of the government and private sector, with a few exceptions that have been detailed below.

The announcement was made by the Ministry of Human Resources and Emiratisation (MOHRE), which said that the scheme has now come into force. It also released details of the law - Federal Decree-Law No. 13 of 2022 Concerning Unemployment Insurance Scheme.

While there are some more details awaited on how employees can enrol for the insurance scheme and which insurance service providers will offer the scheme, here is a breakdown of the details announced today by MOHRE.

Who is eligible for the Unemployment Insurance Scheme?

According to MOHRE, to be eligible for the Unemployment Insurance Scheme, you must meet the following requirements:

1. The new law applies to all employees in the federal government and the private sector in the UAE.
2. The law also stipulates that to be eligible for compensation, the employee must have been insured for no less than 12 continuous months, calculated from the date of subscription in the insurance system.
3. The employee beneficiary shall not have been dismissed from their work for disciplinary reasons, as outlined in the provisions of the Law on Regulating Labour Relations and the Human Resources Law in the Federal Government and any relevant legislation in force.

What is the unemployment insurance scheme’s compensation?

The compensation will be paid monthly, calculated at 60 per cent of the employee’s ‘subscription salary’ and subject to a maximum of Dh20,000 per month, for a period of no more than three months from the date of their unemployment.

Who will provide the unemployment insurance scheme?

Insurance companies licensed by Central Bank of the UAE, who will fulfil the conditions for providing unemployment insurance.

How will employees receive the unemployment insurance scheme?

The Decree-Law on Unemployment Insurance Scheme stipulates that the insured will be compensated with a cash amount for a specified period of time if they lost their job until they find another employment opportunity, which is subject to terms and conditions.

Categories exempted from the Unemployment Insurance Scheme:
• Investors (owners of the establishments in which they work)
• Domestic helpers
• Part-time employees
• Juveniles under the age of 18
• Retirees who receive a retirement pension
• Those have joined a new job

When do employees stop getting the Unemployment insurance scheme compensation?

The compensation will be suspended once the employee joins another job during the compensation period.

The compensation claim should not be through fraud or deception. If it is found that the establishment in which the employee works is not real, the penalties stipulated in the Law on Regulating Labour Relations and any other legislation in force in the country shall apply to the establishment as well as the insured.