From this year onwards every employee, be it in the government or private sector, has to subscribe to the UAE’s unemployment insurance scheme. This is not a voluntary requirement but a mandatory one. The subscription to the scheme began on January 1, 2023, and workers are required to subscribe to a scheme before June 30, 2023, or else they will have to cough up a fine of Dh400.
The ministerial resolution specifies, “Workers/employees who fail to pay their fines for three months from the due date will have the fine amount deducted from their wages through the Wage Protection System, end-of-service gratuity, or any other alternative method deemed acceptable by the Ministry (of Human Resources and Emiratisation).”
As per another provision in the resolution, the employee cannot renew his work permit till fines are paid duly “within the specified timeframe”.
Other fines
The resolution also makes it clear that if the insured does not pay the insurance premiums for over three months from the due date, the insurance certificate will be annulled and a penalty of Dh200 will be slapped on the individual.
If an employer connives with the insured to get unemployment insurance benefits illegally, the ministry can charge a fine of Dh20,000 for every case.
Rest Of The Conditions
The insured has to be a legal resident of the country (UAE)
They need to honour all insurance premiums
The unemployment situation should not have emerged as a result of resignation
The insured should not have lost the job on disciplinary grounds
A claim has to be furnished within 30 days
Eligibility For Compensation
To be liable for compensation, employees should have subscribed to the scheme for a minimum of 12 successive months. For instance, if an employee signs up for the scheme in January 2023, he or she turns eligible for compensation only if he or she loses the job after January 2024.
Where & How To Pay Fine
The fines could be given through the MOHRE website, app and ministry-sanctioned business service centres. The insured could apply for payment via instalments or seek a waiver through the same channels.
