United Arab Emirates: Select Free Zones Clarify that Unemployment Insurance Scheme is Optional for Employees of Registered Companies
June 8, 2023
Select free zones, including the Dubai International Financial Center and the Abu Dhabi Global Market, have clarified that employees of companies registered in these free zones are not required to register and subscribe to the unemployment insurance scheme. However, employees in these free zones can still choose to register and subscribe. Some individuals may choose not to subscribe to avoid the fees involved or if they are leaving the country prior to being eligible to receive the benefits from the scheme, which are only received after a one-year enrollment period. This clarification comes after there was some confusion as to whether the subscription was federally mandated in these areas.
This alert is for informational purposes only. If you have any questions, please contact the global immigration professional with whom you work at Fragomen or send an email to [email protected].
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