UAE: More than 1 million people enrolled in unemployment insurance scheme

Dubai: The Ministry of Human Resources and Emiratis (MoHRE) announced today that the Unemployment Insurance Scheme has surpassed one million subscribers since its launch in January.

Covering employees in both the federal government sector and the private sector, the scheme provides a low-cost job safety net and supports employees’ career paths and life stability in the UAE. It aims to increase the competitiveness of the labor market by introducing innovative mechanisms without increasing costs for employers.

Dr. Abdul Rahman Al Awar, Minister of Human Resources and Emiratisation, said the program “has had a positive impact on the labor market”, describing it as a “driver for growth in the UAE’s economic sector”.

He called on those eligible for the unemployment insurance program to benefit from its coverage and on employers to encourage their employees to enroll.

The insurance is divided into two categories – the first covers those with a basic salary of Dh16,000 and below. The insurance premium for such insured employees is set at Dh5 per month (Dh60 per year) and the monthly compensation is capped at Dh10,000 per month.

The second category includes those with a basic salary of more than Dh16,000, with an insurance premium of Dh10 per month (Dh120 per year) and compensation up to Dh20,000 per month.

The insured (employee) can receive insurance benefits after participating in the unemployment insurance plan for at least 12 consecutive months. Claims can be filed within 30 days of unemployment and will be processed within two weeks of filing. If the insured person cancels the residence permit or joins a new job within the processing period, he shall lose the right to receive compensation.

Compensation is calculated at 60% of the average base salary for the last six months before unemployment, payable for a maximum of three months per claim from the date of unemployment.

Exemption targets include investors, workplace owners, domestic helpers, employees who sign temporary labor contracts, minors under the age of 18, and retirees who receive pensions and start new jobs.

Employees can subscribe to the Unemployment Insurance Plan through Insurance Pool’s website, Intelligent App (ILOE), Bank Smartphone App, Kiosk, Business Service Center, Currency Exchange, SMS and Telecom Bill.

Dr Al Awar said: “After more than a year of implementation, the Labor Relations Regulation and its implementing regulations have increased the flexibility, competitiveness and productivity of the UAE labor market, improved the ease of doing business in the country, and attracted domestic and foreign Talent. It also strengthens the role of the private sector as a partner in building the strongest, fastest growing and most resilient knowledge-based economy in the region, in line with the directive and vision of the UAE leadership.”

The minister revealed that the total number of private sector establishments in the UAE will increase by 11 percent in 2022 compared to 2021. He added that this increase was accompanied by a 38% increase in the total number of work permits issued by the ministry – equivalent to more than 2.1 million, compared to 1.5 million in 2021. About 51 percent of these licenses were for the professional level (1-5), as the total number of employees in the private sector grew by 13 percent.

“Most notably, women’s participation in the private sector will increase by 20% by 2022. This increase is a testament to the UAE leadership’s support for women and the effectiveness of labor market legislation and national policies to achieve greater degree of inclusivity and diversity.”

Dr Al Awar added that the private sector statistics for 2022 reflect the concerted efforts of entities across the UAE to promote the country’s business environment, comply with the legal framework setting the requirements for development over the next 50 years, and align with wise leadership Directives at the top level on the development of priority sectors to support the future economy.

He said the new results have galvanized the ability of the private sector to achieve sustainable growth and increase its contribution to the country’s GDP.

“These increases in the labor market have been complemented by an unprecedented level of emiratization by 2022 under the direction of the Vice President, Deputy Prime Minister, Minister in the Presidency, Sheikh Mansour bin Zayed Al Nahyan,” he said. Complementary to results and achievements, Chairman of UAE Talent Competitiveness Council [Nafis].

This is especially important with a 70% increase in the number of Emiratis working in the private sector in 2022 compared to 2021, reflecting the strength of our economy and the diversity of private sector employment opportunities. “

Regarding inspections, Khalil Al Khoori, Undersecretary for Human Resources Affairs, said: “As part of the inspection automation process, the Ministry of Human Resources and Emiratisation has adopted online channels such as inspection applications, smart assessment forms and maps to ensure efficient, accurate risk matrix-based and transparent inspection and identification of risk factors as indicators of labor market discipline.”

In 2022, the Ministry of Health completed more than 612,000 inspections of private sector establishments. They recorded more than 12,000 violations and issued corresponding administrative fines. At the same time, more than 3,000 petitions were filed with legal authorities against institutions violating the Regulations of the Labor Relations Act. More than 3,000 businesses have also been prosecuted for failing to pay wages through the Wage Protection System (WPS).

Violations include non-compliance with employment requirements, occupational health and safety, wage protection system, non-compliance with housing/accommodation standards, and non-compliance with summer lunch breaks. Violations also include non-compliance with the issuance of contracts and work permits, working without a permit or through temporary employment agencies, fake emiratization, possession of official documents of domestic workers by employers, and other violations.

In addition, more than 2 million employees in the private sector have benefited from self-direction, awareness and mentoring programs about the rights and responsibilities of contracting parties. These programs are offered in 15 languages ​​by centers that specialize in educating and mentoring workers. In addition, 82 seminars were held to raise awareness of the regulations, attended by more than 7,000 employers.

Ayesha Belharfia, Acting Undersecretary for Emirate Affairs and Assistant Undersecretary for Labor, said that during 2022, the ministry amicably resolved about 81% of labor complaints while the remaining 19% were referred to labor courts because The parties concerned could not reach an amicable solution.

She reiterated MoHRE’s commitment to protecting both parties in the employment relationship and safeguarding their rights fairly. She said: “This strengthens the UAE’s position as a global destination to live, invest and work in a competitive and flexible labor market supported by a strong regulatory ecosystem, in line with the international labor agreement that the country has co-signed. protocol”

She added: “We are also committed to promoting a process by which professional legal researchers file and deal with complaints in a transparent and fair manner. These legal researchers are also keen to find an amicable solution between the parties involved in order to save the complainant time and effort of both parties and labor courts.”