United Arab Emirates: Additional Information Published on Unemployment Insurance Scheme

The UAE government published additional details related to the unemployment insurance scheme under which Emirati and foreign nationals employed in the private and public sectors (except self-employed business owners, temporary work permit holders, domestic workers, individuals aged 18 or below and retired individuals receiving a pension) must subscribe by January 30, 2023. The law will fine individuals AED 400 if they are not subscribed to the scheme and AED 200 if they fail to pay the prescribed premiums within three months of their due date. Authorities will be able to deduct any unpaid dues from the employee through various means. In order to benefit from coverage, individuals must have been insured for at least 12 consecutive months and have paid their premiums regularly as per the insurance policy; must show evidence of being unemployed for a reason other than their own resignation; must not have been terminated for disciplinary reasons as per UAE employment law and cannot have a pending unauthorized absence complaint; must submit their unemployment insurance scheme claim within 30 days from their termination date; and they must hold legal immigration status in the United Arab Emirates. According to the Ministry of Human Resources and Emiratization, employees may subscribe to the scheme via the Insurance Pool website, smart applications, ATMs, dedicated kiosks, money exchange companies and via SMS. However, these channels have not yet begun to support the registration process.