UAE: Apply for Unemployment Insurance Before June 30 or Face Fines
The UAE unemployment insurance rolled out in the country in January and is mandatory for all employees including those in the freezone and semi-government entities. The grace period to sign up for the mandatory job loss insurance ends on June 30. Those not subscribed to the mandatory insurance scheme will face fines.
The UAE unemployment insurance is to provide financial support to individuals who experience job loss. Under this program, eligible workers can receive up to AED20,000 per month for a maximum of three months, starting from their date of employment. However, in order to qualify for this benefit, employees must have been enrolled in the unemployment insurance scheme for a minimum duration of 12 months.
The unemployment insurance covers two categories based on the monthly salary of the employee – Category A covers those who earn less than AED16,000 per month and Category B covers those who earn over AED16,000.
Eligibility and criteria
- There must be a minimum subscription period of 12 consecutive months for the insured in the scheme. Provided that there is no interruption in the subscription for three consecutive months
- The Insured was committed to paying all the insurance premiums due on time.
- The Insured proves that the reason for unemployment is not due to resignation.
- The Insured may not be dismissed for disciplinary reasons under the Labour Relations Law and the Human Resources Law of the federal government in addition to any applicable legislation.
- Submit the claim within 30 days from the date of loss of the working relationship or the settlement of the labour complaint referred to the judiciary.
- The Insured worker should not have an existing complaint related to the absence from work.
- The Insured shall not be entitled to compensation if there has been fraud or deceit involved in his claim or if the establishment where they work is fictitious.
- The Loss of Employment should not be the result of non-peaceful labour strikes or stoppages, whether they result in harm or not.
