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The UAE Launched A New Unemployment Insurance Scheme
On October 11, the Ministry of Human Resources & Emiratisation announced the Unemployment Insurance Scheme.
The Unemployment Insurance Scheme is for government and private sector employees
The Ministry stated, “This is a social security scheme. It ensures the sustainability of a decent life for Emiratis and resident employees during their unemployment period. While also reducing business risks.”
Moreover, the scheme mentions that the insured receives a cash amount for a specific period of time. This applies only if they lost their job. It ends when they find another employment opportunity.
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This is what the Decree-Law on the Unemployment Insurance scheme includes
The compensation will be paid monthly. Additionally, the compensation calculated at 60% of the employee’s subscription salary. It is also subject to a maximum of AED20,000 per month. The period lasts no more than three months from the date of unemployment.
Furthermore, the insured person’s employment record should be at a minimum of 12 consecutive months.
The MoHRE clarified who this law applies for and who is exempt from it
The law applied to all employees in the federal government sector and private sector in the UAE. However, those exempt from the Unemployment Insurance Scheme are:
- Domestic helpers
- Part-time employees
- Juveniles, people under the age of 18
- Lastly, retirees who receive a retirement pension and joined a new job
If the beneficiary was dismissed from their work for disciplinary reasons, then they are not qualified for the scheme. Furthermore, it is illegal to claim the compensation through fraud or deception.
Lastly, the compensation ends once the employee joins another job during the compensation period.
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