
Dubai: If you do not sign up for the UAE's Unemployment Insurance Scheme before the October 1 deadline, you will face a Dh400 fine.
Apart from subscribing to the scheme before the deadline ends, you need to also ensure that you do not delay the payment of the insurance instalments.
Also, if you do incur any fines, not paying them within the required time limit will impact your job prospects, as per the list of fines and penalties that have been announced by MOHRE. Here are the details of the fines and penalties that you should be aware of.
What is the mandatory Unemployment insurance scheme?
The Involuntary Loss of Employment (ILOE), also known as Unemployment Insurance Scheme, came into effect on January 1, 2023, and you can register for it through the official ILOE portal - www.iloe.ae.
So far, over three million employees have subscribed to the programme, and it benefits workers financially, until they find a new job. Depending on your salary, you just have to pay Dh5 or Dh10 per month to be eligible for the three-month compensation.
What are the fines and penalties?
The fines and penalties for not subscribing or complying with the ILOE policy are stipulated in Articles 9 and 10 of the Ministerial Resolution No. 604 of 2022 Concerning Unemployment Insurance Scheme, and are of two types:
1. Failure to subscribe to the scheme
If you do not subscribe to the Unemployment Insurance Scheme after the deadline you will face a Dh400 fine.
2. Failure to pay insurance instalments on time
If you have subscribed to the scheme but have not paid the premiums according to the selected payment frequency (monthly, quarterly, semi-annual or annual) for a period exceeding three months from the due date, the insurance certificate will be cancelled and a penalty of Dh200 will be imposed.
Not paying the fine? It might get deducted from your wages
Besides, stipulating the fines for not subscribing or paying the instalments, the ministerial resolution also highlights the penalties for ignoring the payment of the fines.
According to clause 4 of Article 9 of the resolution, an employee who fails to pay their fines for three months from the due date will have the fine amount deducted from their wages through the Wage Protection System (WPS), or end-of-service gratuity.
No new work permit
If you do not pay all your fines you may be prevented from getting a new work permit, which will prevent you from joining a new job.
As per Article 10 of the resolution, if there are fines resulting from non-subscription or non-compliance with the ILOE scheme, the employee will not be eligible for a new work permit.