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Saturday, March 2, 2024

UAE’s New End-of-Service Benefits Scheme: Consequences for Employers Not Paying Subscription Fee

Dubai employers planning to register employees for the UAE’s new gratuity investment system must pay the subscription fee or risk fines and potential work permit restrictions. The ‘Voluntary Alternative End-of-Service Benefits Scheme,’ effective since November 1, allows employers to invest employees’ end-of-service gratuity in approved investment funds. The subscription fee, mandatory for registered employees, is 5.83% of monthly basic salary for service durations under five years and 8.33% for durations exceeding five years.

Consequences for Non-payment: Fines and Work Permit Restrictions

If employers fail to pay the subscription fee, Article 12 of ‘Cabinet Resolution No. (96) of 2023’ outlines the following consequences:

  1. Notification and Payment Request: The fund manager notifies the employer in writing within 30 days of the payment date, requesting payment within five business days.
  2. MOHRE Notification: The fund manager informs the Ministry of Human Resources and Emiratisation (MOHRE) of non-payment within 15 days of the payment notification.
  3. Work Permit Restrictions: If an employer fails to pay for two months, MOHRE stops issuing new work permits and may take other administrative actions as per regulations.
  4. Penalties: A penalty of AED 1,000 per beneficiary per month is imposed if subscription amounts remain unpaid after four months from the due date.

Understanding the New Gratuity Investment System: Employers

The ‘Voluntary Alternative End-of-Service Benefits Scheme’ offers employers the option to invest employees’ gratuity in well-performing investment funds. The monthly subscription fee varies based on the employee’s service duration. Employers are urged to comply with payment obligations to avoid penalties and potential restrictions on work permits. The system aims to provide investment returns on end-of-service gratuity, offering a more sustainable approach to employee benefits.*

Navigating the Dynamics of Ghosting in Relationships and the Workplace

Ghosting, a phenomenon where individuals abruptly cease communication, is becoming more prevalent in various aspects of life, including personal relationships and professional settings. In romantic connections, ghosting takes on different forms such as zombieing and ghostlighting, each representing unique dynamics in communication. Moreover, ghosting has extended to the workplace, with employees resorting to sudden departures without notice or explanation. This behavior, attributed to a fear of confrontation and emotional avoidance, raises concerns about its long-term impact on individuals’ personal growth and relationship-building skills. While some argue that ghosting may provide temporary relief from discomfort, psychologists emphasize the importance of healthy communication, empathy, and conflict resolution for overall well-being and growth.

Breaking the cycle of ghosting involves acknowledging its harm, developing communication skills, and fostering empathy. The societal trend of avoiding discomfort, often termed the ‘cult of convenience,’ is seen as a contributing factor to the prevalence of ghosting. Actively embracing discomfort as an integral part of human existence is suggested as a means to promote emotional resilience, personal growth, and improved well-being. Encouraging honesty, practicing effective communication, and treating others with the respect we desire are recommended strategies to counter the negative effects of ghosting in various aspects of life.

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