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All UAE nationals and residents working in any sector are entitled to 3 months cash compensation if they lose their job due to dismissal
Subscriptions to the Unemployment Insurance Program are now available. Starting early this morning, January 1, 2023, the Involuntary Unemployment website is officially open for subscription.
The recently announced mandatory scheme by the Ministry of Human Resources and Emiratisation (MoHRE) provides a job safety net that supports employees while providing them with career stability at no cost to employers. It stems from Federal Decree No. 13 of 2022.
Under the scheme, all UAE nationals and residents working in the private and federal sectors are entitled to three months of cash compensation if they lose their job due to dismissal – unless it is due to disciplinary action or resignation.
The subscription fee is Dh5 per month for individuals with a basic salary of Dh16,000 or less and Dh10 per month for individuals with a basic salary of more than Dh16,000. Subscription fees can be paid monthly, quarterly, every six months or annually.
Individuals must have subscribed for at least 12 consecutive months to be eligible for compensation, which is 60% of base salary earned for the last six months prior to termination. If individuals leave the country or find a new job, they lose their right to claim.
Exempt categories from the scheme are: investors or owners of the establishments they work for, domestic workers, casual contractors, youth under 18, and retirees receiving a pension and joining a new job.
Earlier this week, MoHRE urged all residents and UAE nationals to subscribe. In addition to the website, it is possible to subscribe to the planned insurance pool represented by Dubai Insurance through one of the following channels: smart application iloe, Kiosk machines, merchant service centers, Al Ansari Exchange, bank ATMs and applications, telecom bills.
Other provisions of the plan include: uninterrupted insurance coverage for 3 consecutive months, commitment to pay all insurance premiums on time, provide proof of unemployment reasons other than resignation, file a claim within 30 days from the date of loss of work relationship, or submit to judicial authorities for settlement of labor complaints , Insured workers should not have existing complaints related to absences.
Additionally, insureds are not entitled to compensation if their claims involve fraud or deceit, or if the agency they work for is fictitious. Unemployment shall not be the result of a non-peaceful strike or lockout, regardless of whether the injury was caused or not, and the insured must be legally resident in the UAE.
Claims can be submitted through various channels including the website, app or call center and payments will be processed within two weeks from the date of claim submission.
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