All employees of federal government departments and private sector companies are required to enroll in the UAE’s unemployment insurance scheme. The scheme’s subscription period began on January 1, 2023. Employees will be fined Dh400 if they do not participate in a scheme by June 30, 2023.
The fines will be collected in accordance with a ministerial resolution. The ministerial resolution states under ‘fines and collection methods’ that “workers/employees who fail to pay their fines for three months after the due date will have the fine amount deducted from their wages through the Wage Protection System, end-of-service gratuity, or any other alternative method deemed acceptable by the Ministry (of Human Resources and Emiratisation).”
Another article in the resolution states that the employee will not be eligible for a new work permit until all due fines are paid “within the specified timeframe”.
- According to the decision, the insurance certificate would be revoked and a fine of Dh200 imposed if the insured does not pay the insurance premiums for more than three months after the due date.
- A Dh20,000 administrative fee will be assessed by the ministry in any instance where an employer conspires with an insured person to receive unemployment insurance benefits.
How to pay the fines?
The ministry-approved business service centres, the MOHRE website, and the app are all places where employees can pay fines. Through the same means, they can also ask for payment in instalments or make a waiver request.