The New Unemployment Insurance UAE

A new employment scheme in UAE was launched in October as part of a wider range of reforms by the Ministry of Human Resources and Emiratisation looking to attract new talent and investment into the country. The new employment insurance in the country will offer up to 3 months’ compensation for employees of both the private and public sectors.

These unemployment benefits in UAE will serve as a form of insurance for residents if they are terminated by their employers and should help to ensure a decent standard of living while they search for another job.

Below we will take a look at the new unemployment scheme UAE in detail and tell you everything you need to know about the rules and regulations involved.

How Will the New Unemployment Insurance Work?

The new unemployment insurance will serve as a form of social security whereby financial support is given in exchange for payment of a new monthly insurance premium by the worker while they are employed.

To be eligible for the new employment insurance, workers will need to have paid their monthly insurance premium consecutively for at least a year.

How Much Will Workers Receive Under the New Unemployment Insurance Scheme?

Insured individuals will receive 60 per cent of their basic salary up to a limit of 20,000 AED each month. These payments will be calculated from the day the worker loses their job and will last for three months or until they find a new job.

Who Does the New Scheme of Unemployment Benefits UAE Apply to?

Under the new UAE government scheme all workers will be eligible to receive insurance payments with the exception of the below:

Business Owners and Investors who own and manage their organizations.
Workers under 18 and retirees.
Those who are working temporarily.
Domestic workers.

When will Unemployment Insurance UAE be Suspended?

Workers will be ineligible for the new employment insurance if they fall into any of the below categories:

They were dismissed from their employment for transgressing the UAE’s Private Sector Labour Law.
They have claimed to work in a fictitious company.
They have fraudulently or deceitfully submitted their claim.

What are the aims of the New Unemployment Insurance in the United Arab Emirates?

The new unemployment scheme aims to enhance the attractiveness and competitiveness of the United Arab Emirates in the international labour market. It is hoped that by providing this new unemployment insurance and providing social protection to those who have lost their jobs, UAE will continue to strengthen its ability to attract the best international workers, investors, and talent.

Where To Find Advice About Unemployment Insurance and Benefits UAE?

If you need guidance and advice about UAE, you can contact an experienced and knowledgeable employment lawyer for advice. An employment expert in UAE will help you to make sure that you are getting all the support and benefits you are entitled to and help you to ensure that you are being compliant will all the necessary rules and regulations.

Sara Advocates and Legal Consultants can offer you an initial phone consultation where you will find out what advice and assistance may be on offer and how their legal expertise can support you in any employment disputes. Contact us today to learn how we can help.