United Arab Emirates: Further Update on the Unemployment Insurance Scheme

The Dubai Insurance Company now allows the following additional categories of workers to subscribe to the unemployment insurance scheme, also referred to as the Involuntary Loss of Employment Scheme: employees in semi-government entities; and employees of companies registered in the UAE free zones. It is not clear if these categories are obligated to register with the scheme, and should this requirement be mandatory for the two additional categories, it is not clear if the registration must be completed by June 30, 2023, or if a new deadline will be announced. Additionally, mechanisms for recovering unpaid premiums and penalties for missing the subscription deadlines are yet to be clarified. The scheme was introduced in May 2022 and is part of broader measures to create favorable employment conditions for Emirati and foreign nationals to attract local and foreign talent to work in the United Arab Emirates. It facilitates financial support for a limited period during unemployment.