The UAE’s unemployment insurance scheme for federal government and private sector employees has taken effect. Those who are insured against job loss will receive a cash payment for a set period of time until they find another job, subject to certain terms and conditions.
The compensation will be paid monthly, at 60% of the employee’s subscription salary, with a monthly maximum of Dh20,000, for a period of no more than three months from the date of unemployment.
According to the Ministry of Human Resources and Emiratisation (Mohre), the scheme applies to all employees except investors (owners of the establishments in which they work), domestic helpers, part-time employees, juveniles under the age of 18, and retirees who receive a retirement pension and have started a new job.
To be eligible for compensation, the employee must have been insured for at least 12 months, beginning with the date of enrollment in the insurance system. Furthermore, the beneficiary must not have been fired for disciplinary reasons. The compensation claim should not be obtained through deception or fraud. If it is discovered that the workplace where the employee works is not legitimate, penalties will be imposed.
The employee’s compensation will end when he or she receives another job. The insured may discuss additional benefits with the service providers, which are insurance companies licenced by the UAE Central Bank. Other government entities designated by the UAE Cabinet to provide unemployment insurance services may be service providers.
The compensation to which the insured is entitled under the scheme is independent of any other entitlements outlined in other UAE legislation.