Federal Decree-Law No. 13 of 2022, relating to unemployment insurance. This insurance scheme is designed to provide financial support for employees fired by their employers.
Workers who have paid their monthly insurance premium during employment will be eligible for financial assistance. Employers do not have to pay for this insurance. Employers can enroll in the insurance program. 2023, which became mandatory on January 1, is now a requirement.
This is why you should introduce it.
The main goal of the unemployment insurance scheme is to provide workers with income for a restricted period. It provides workers with social security to ensure they can continue living a decent lifestyle during unemployment.
It’s also intended to improve the competitiveness of Emiratis within the labor market and create a knowledge economy that is competitive by attracting and keeping the best international talent.
What’s the Scope of The Scheme?
The scheme is open to all employees in the federal and private sectors, except:
- Entrepreneurs who are investors and business owners who have their businesses.
- Domestic workers
- Temporary employees
- Employees below the age of 18
- Requirements who are pension-receiving have had their employers changed.
Is Registration Mandatory
Starting January 1, 2023, insurance policies against job losses will be mandatory under the Ministry of Human Resources and Emiratisation.
The Unemployment Insurance Scheme is available to federal and private sector employees starting at AED 5/Month.
Available Schemes, Premiums & Eligibility
The maximum amount paid per month is AED 20,000. The amount will be delivered from when the employee loses their job and continues for three months or until the employee gets a job.
AED 16,000 or less
AED 5/Month / AED 60/Annum
AED 10,000/month is not allowed
Exceed AED 16,000
AED 10/Month / AED 120/Annum
AED 20,000/month is not enough
For the worker to be eligible for compensation, they must have paid the monthly premium for at least twelve consecutive months. Also, payments must have been made on time.
Resignation cannot be the cause of unemployment. The insurance scheme is intended for employees who have left their job. Workers who are dismissed for reasons other than discipline are automatically ineligible.
Employees must submit the claim within 30 days after the termination date.
Providers of insurance schemes
The Ministry of Human Resources & Emiratization has stated that the scheme will only be offered by Dubai’s insurance companies, such as:
- Dubai Insurance Company
- Abu Dhabi National Insurance Company
- Al Ain Ahlia Insurance Company
- Orient UNB Takaful Company
- Oman Insurance Company
- Abu Dhabi National Takaful Company
- Orient Insurance
- National General Insurance Company
- Emirates Insurance Company
- Al Ain Ahlia Insurance Company
Here are the subscription channels available:
- Du & Etisalat
- Exchange companies
- Business Service Centers
- Bank ATM & Kiosk Machines
- Site of insurance pool (www.iloe.ae). Smart application
Suspension From the Scheme
Any of these situations could lead to the worker being denied compensation.
- If the worker is fired from employment for disciplinary reasons, as defined by the Federal Decree-Law No. 33 of 2021 – Regulation of Employment Relationships and its amendments, and the Federal Human Resources Law
- Fraudulent behavior during the claim
- They work in a fictional location