Abu Dhabi: Driven by its historic values and inclusive culture, the UAE continues to refine its comprehensive workforce system.
This balanced approach ensures both employee rights and employer needs are addressed, solidifying the UAE’s position as a global leader in human resource management.
The UAE’s commitment to its workforce shines through in the tangible results. The Ministry of Human Resources and Emiratisation’s (MoHRE) initiatives have created a world-class environment for workers, attracting talent, boosting productivity, and unleashing creativity.
Workers Protection Programme
The ministry revealed that the percentage of workers in the private sector covered under the “Workers Protection Programme” has reached 98.8 per cent, Wam reported. The ministry indicated that more than 24,000 workers have benefited from the services provided by the programme over the past five years, which included claims related to unpaid wages, unpaid end-of-service, and other worker entitlements, noting that the total amount paid to workers for their claims through the programme amounted to more than Dh202 million.
Unemployment insurance scheme
The ministry also referred to the “Unemployment Insurance Scheme” which came in accordance with Federal Decree-Law No. 13 of 2022 on Unemployment Insurance, which aims to ensure the availability of income for a limited period for the insured person during the period of unemployment until alternative job opportunities are available in accordance with the provisions of this decree.
The ministry stated that the number of subscribers to the “Unemployment Insurance Scheme” has reached more than 6.7 million subscribers to the system, which contributes to providing a social protection umbrella for the workforce, ensuring the continuity of a decent life for them and their families until alternative job opportunities are available, and attracting the best global talents and retaining them to reach a competitive knowledge-based economy.
- Watch: How Ministry of Human Resources and Emiratisation helps expat get salary on time
- MoHRE revokes licences of 2 domestic worker recruitment agencies
- Domestic worker swap: 153 UAE employers face up to Dh50,000 fines
- New UAE rule: MoHRE to resolve Dh50,000 or less disputes of companies and workers in private sector
This unique system provides security for employees who lose their jobs for reasons other than disciplinary action or resignation until they find a new job. Qualified employees are compensated with monthly cash benefits of up to 60 per cent of the average salary in the last 6 months before losing their job.
These cash benefits are provided for 3 months, provided they have subscribed to the system for at least 12 months. The system includes employees in the federal government and the private sector, both citizens and residents. In this context, MoHRE and the Securities and Commodities Authority have begun implementing the optional alternative system for end-of-service gratuity, the “Savings Scheme.”
Through this scheme, the amounts allocated for end-of-service gratuity for employees working in companies that choose to subscribe to the system are invested through investment funds approved by the ministry and the authority, with the aim of developing the employees’ savings and benefiting from their investment returns.
This is expected to enhance the ease of doing business, increase the economic impact of both the employer and the employee, and support the economic system in the country. In addition, the cost of subscribing to the system for the employer in the medium term is lower than the cost of paying end-of-service gratuity in the current system.
This is in implementation of Cabinet Decision No. 96 of 2023 on the optional alternative system for end-of-service gratuity for employees in the private sector, the “Savings System.”
The “Savings Scheme” contributes to increasing the attractiveness of the labour market for national and international talents and experiences, thus confirming the UAE’s position as one of the most prominent destinations for living and working.
This is done by providing innovative systems that achieve the individual benefits that they aspire to achieve, ensuring and protecting the financial entitlements of workers, providing opportunities to save and develop them, achieving investment returns on them, and reducing the number of labour disputes between workers and employers over end-of-service gratuity.
In the context of its efforts to raise awareness of the workforce of their rights and obligations, MoHRE referred to the “Tawjeeh” awareness programme, through which the worker learns about his rights, legal obligations, and the customs and traditions prevailing in the society of the UAE.
Regarding the midday work ban, which prohibits the operation of workers from 12:30 to 15:00 during the period from 15 June to 15 September of each year under the sun and in open spaces, the ministry noted the great cooperation of all concerned partners in the federal and local government sectors and the private sector in the success of implementing this decision.
During 2023, MoHRE announced the provision of 356 rest stations secured with basic services for use by delivery bike drivers in all areas of the state, this is after coordination between the ministry and the companies responsible for delivery workers and with the support and participation of the concerned government agencies.
The ministry stated that this step comes from the common concern for the safety of delivery workers and to avoid them from heat stroke and heat exhaustion during the performance of their work in the summer months in light of the high temperatures, especially during the afternoon when there is a ban on the performance of work under the sun and in open spaces.
It is worth noting that the UAE tops a number of global indicators related to the labour market, as it ranked first globally in the “Talent Attractiveness Index” according to the 2023 Global Prosperity Report issued by the British Legatum Institute, and it also ranked first globally in a number of indicators in the report of the World Competitiveness Ranking 2022 issued by the International Institute for Management Development (IMD) in Switzerland, namely “few labour disputes”, “low costs of compensating for termination of worker’s services”, “working hours”, in addition to the indicator of “low cost of termination of service” in the report of the Global Innovation Index 2022 issued by the World Intellectual Property Organisation (WIPO).
The UAE ranked second globally in five indicators within the “World Competitiveness Year Book 2023”, namely “availability of qualified senior managers”, “employment rate”, “low unemployment”, “percentage of migrant labour force”, and “percentage of labour force from the population”.