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The Ministry of Human Resources and Emiratisation stated that penal procedures have been signed against the worker or employee in the government and private sectors, for non-compliance with subscribing to the “unemployment insurance” system, with a fine of 400 dirhams, or for non-compliance with paying the premiums after subscribing to the system for a period of three months, with a fine. of 200 dirhams.
The head of the Labor Complaints Department at the Ministry, Dr. Ahmed Al-Qarah, said in media statements: “The launch of the unemployment insurance system comes in implementation of the Cabinet’s decision regarding the system issued based on Federal Decree-Law No. 13 of 2022 regarding unemployment insurance, and the system aims To provide protection cover for workers in the (private) and (federal government) sectors, by compensating them with cash sums for a specified period not exceeding three months for each claim, in the event that they lose work as a result of termination of their services for reasons beyond their control.
The system also aims to provide occupational stability for all workers in the UAE by creating a safe, simple and accessible umbrella for all, at a small cost that supports the careers of workers in the country and guarantees their living stability, based on innovative mechanisms that do not incur additional costs for employers and provide a balance in the labor market. It allows achieving the strategic objectives of the state and supports the continuity of economic activities.
As for the categories excluded from the mandatory participation in the system, Al-Qarah explained that the unemployment insurance system is mandatory for all workers in the private and federal government sectors, citizens and residents, with the exception of five categories that are excluded from the system, namely: the investor category, and labor Helpers, workers with a temporary contract, juveniles under 18 years of age, retirees who receive a retirement pension and have joined a new job, in addition to that it does not include workers in local government agencies, and therefore workers in both sectors must participate in the system starting from the first of next January (2023). .
He stressed that the workers or employees are obligated to participate in the system at their own responsibility, and the role of the employer revolves around directing and motivating them to participate in the system only, pointing out that penal procedures have been set for the worker in the event that he does not participate in the system, as in the event of non-compliance with participation, it is imposed The worker is liable to a fine of 400 dirhams, and if the worker participates and does not commit to paying the insurance premiums for a period of three months, a fine of 200 dirhams will be imposed on him.
Al-Qarah added that there is a state of optimism with the great response from workers and employees with participation in the system and commitment to pay the installments, and penal procedures are the last axes that can be looked at.
He stated that the unemployment insurance system is divided into two categories: the first includes workers and employees whose basic salary is 16 thousand dirhams or less, and the value of the monthly insurance premium for this category is five dirhams per month, at the rate of 60 dirhams annually, and the second category whose monthly salary is 16 thousand dirhams. For more, the value of the insurance premium is 10 dirhams per month, at the rate of 120 dirhams annually, and therefore the subscription value is proportional to all groups, whether the workers are of the first or second category, as it is within the framework of their financial ability.
And Al-Qarah continued, “In the event that any worker or employee loses his job for reasons beyond his control, the insurance coverage for the first category will be 10 thousand dirhams per month at a maximum, and the second category will be 20 thousand dirhams, which is the coverage that the worker will get in the event of losing his job or work for reasons external.” Of his own free will, and thus the coverage represents 60% of the basic salary that they subscribed to, for a period of three months from the date of unemployment.
He explained that the worker, after his participation in the system, and his compliance with the conditions of eligibility for insurance coverage, obtains insurance coverage after termination of his service for a reason beyond his control, provided that he did not submit his resignation, and if he joins another job, he is entitled to coverage if his service is terminated from the new job for reasons outside. of his will.
He pointed out that the ministry recently signed an agreement with the Dubai Insurance Company, which represents an insurance complex that includes nine national insurance companies, to provide the insurance policy for employees and workers against their unemployment, and the Dubai Insurance Company is working to provide subscription channels, starting from the first of next January. Among the channels for subscription and payment of insurance premiums: the website, the smart application of the insurance complex, the smart applications of banks and banks operating in the country, exchange companies, self-service machines, businessmen’s websites, and telecommunications companies operating in the country, including “du” and “Etisalat”, and through direct text messages.
The unemployment insurance system is compulsory for workers in the private and federal government sectors, both citizens and residents.
Subscription method
The head of the Labor Complaints Department at the Ministry of Human Resources and Emiratisation, Dr. Ahmed Al-Qarah, stated that the worker or employee can enter the required papers on any of the specified subscription channels, and then the system determines for the person the category in which he can subscribe, and then he is given a choice between ways to pay the subscription, either monthly. , or quarterly, or semi-annually, or once a year, then he receives a link to pay the premium value, or according to the channel through which he subscribes to the system, pointing out that the value of the insurance policy is subject to value-added tax.
Conditions for entitlement to compensation
1- 12 months after the date of subscription.
2- The reason for terminating the labor relationship does not belong to the worker (such as resignation or as a disciplinary measure).
3- In the fixed-term contract, if the termination of the relationship is at the worker’s will, he is not entitled to coverage against unemployment.
