img
MOHRE Announces New Unemployment Scheme

The Ministry of Human Resources and Emiratisation (MoHRE) announced on Tuesday that an “Unemployment Insurance Scheme” for employees of the federal government and the private sector has come into force.

The Decree-Law on Unemployment Insurance Scheme stipulates that the insured will be compensated with a cash amount for a specific period of time if they lost their job until they find another employment opportunity, subject to terms and conditions.

The new system provides a “social security scheme that ensures the sustainability of a decent life for Emiratis and resident employees during their unemployment period, while reducing business risks,” the ministry said. “It also aims to enhance the competitiveness of the UAE nationals, boost the attractiveness of the UAE’s job market for the best international and national talents and contribute to building a competitive knowledge-based economy that is among the best globally.”

The compensation will be paid monthly, calculated at 60 percent of the employee’s subscription salary and subject to a maximum of AED20,000 per month, for no more than three months from the date of their unemployment.

Dr. Abdulrahman Al Awar, Minister of Human Resources and Emiratisation, said, “The decree reflects the UAE government’s approach in developing the business environment and enhancing the UAE’s position as a preferred destination to work and live, which is confirmed by global indices. Reports showed the preference of people worldwide to work and settle in the UAE because of the advantages it provides in terms of security, safety, job benefits, as well as the level of education, health, and quality of life.”

He added,“The UAE prioritises preserving human dignity, and this decree enhances the legislative environment to safeguard the rights of all employees in the country – Emiratis and residents alike and provides them with the best means of care at all levels. This contributes to enhancing the stability and prosperity of society, which is among the top priorities of our wise leadership.”

The terms and conditions of the new law apply to all employees in the federal government and the private sector in the UAE, except for 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 joined a new job.

The law stipulates that to be eligible for compensation, the employee must have been insured for no less than 12 continuous months, calculated from the date of subscription in the insurance system. In addition, the beneficiary shall not have been dismissed from their work for disciplinary reasons, as outlined in the provisions of the Law on Regulating Labour Relations and the Human Resources Law in the Federal Government and any relevant legislation in force.

Furthermore, the compensation claim should not be through fraud or deception. If it is found that the establishment in which the employee works is not real, the penalties stipulated in the Law on Regulating Labour Relations and any other legislation in force in the country shall apply to the establishment as well as the insured.

Lastly, the compensation shall be suspended once the employee joins another job during the compensation period.

The insured may agree on additional benefits with the service providers – the insurance companies licensed by Central Bank of the UAE and fulfil the conditions for providing unemployment insurance, which are issued by the UAE Cabinet after consulting with the Central Bank of the UAE. Also, service providers may include other government entities assigned by the UAE Cabinet to provide unemployment insurance services.

The compensation to which the insured is entitled under this Decree-Law shall not influence any other compensation or entitlements outlined under any other legislation in force in the UAE.

Related Posts

img
24 October,2022

Attraction of FDI requires “whole government” approach to legal and regulatory transformation

Speaking during a Future Investment Initiative (FII) session titled, “Wealth of Nations: How New L...

img
04 October,2022

THE GIG ECONOMY

  More & more people are taking on gigs. Short, one-off assignments that mostly do not req...

img
04 October,2022

Reflecting Dubai Expo 2022 Success

His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE and...

img
13 October,2022

Spotlight: Adil Hosgor

How did you get into Transformation and Innovation? All of us have great experience in this domain, ...

img
25 January,2023

Employers Encouraged to Use Electronic Payments for Domestic Workers

The Ministry of Human Resources and Emiratisation (MoHRE) has called on employers to register their ...

img
11 February,2023

Amendments to Mechanism of Achieving Emiratisation Targets

The Ministry of Human Resources and Emiratisation (MoHRE) announced on Tuesday amendments to the mec...

img
08 December,2023

Companies of 49-100 Employees Must Comply with Emiratisation Targets

The Ministry of Human Resources and Emiratisation (MoHRE) has notified over 12,000 private companies...

img
08 May,2024

Paid Holiday for Private Sector on 8th October 2022

The Ministry of Human Resources and Emiratisation (MoHRE) announced that Saturday, 8th October 2022,...

img
07 January,2023

Sharjah Outlines Categories Eligible for Retirement

H.H. Dr. Sheikh Sultan bin Muhammad Al Qasimi, Supreme Council Member and Ruler of Sharjah, during a...

img
02 December,2022

‘Jahiz’, the UAE’s Latest Digital Platform

The UAE government launched “Jahiz”, an upskilling initiative for the future of government t...