What You Should Know About The UAE Unemployment Insurance

 

The United Arab Emirates (UAE) citizens and ex-pats are eligible for unemployment insurance under a new Involuntary Loss of Employment Scheme.

Under the scheme, the employees will be protected against the risk of job loss, effective from next year. The insured must meet the following criteria to be eligible for unemployment insurance. It applies to employees of all nationalities in the public and private sectors in the country.

The UAE Unemployment Insurance

There must be a minimum subscription period of twelve consecutive months for the insured under the scheme. Under the scheme, a person must be able to pay all the insurance premiums due on time.

A person has to prove that the reason for unemployment is not due to a resignation. He/She should not be dismissed under the Labour Relations Law and the Human Resources Law of the federal government.

If he/she has lost the job, they must submit the claim within 30 days from the date of loss of the working relationship. He/she cannot be entitled to compensation if there has been fraud in their claim. They must be legally present in the UAE to receive unemployment insurance.

A person cannot receive this benefit if the loss of a job is due to war, riot, insurrection, armed rebellion, revolution, and the dangerous effect of any explosive nuclear equipment.

The UAE Ministry of Human Resources and Emiratisation (MoHRE) announced the launch of the ‘Unemployment Insurance Scheme’ for private sector employees in October. The ministry stated that if a person is unemployed, they are entitled to receive a maximum of AED20,000 per month for a period of consecutive three months from the date of unemployment.

The scheme does not cover investors, domestic helpers, part-time employees or retirees who have a retirement pension and people under the age of 18.