Federal Decree-Law No. 13 of 2022 is about unemployment insurance. The scheme provides financial support to employees whose employment has been terminated.
Workers who pay a monthly insurance scheme premium during their employment are eligible for financial support. Employers don’t have to cover this expense. The insurance scheme is available to employees.
Why do you want to introduce this scheme?
The unemployment insurance scheme primary objective is to protect and provide income for workers for a certain period. It offers social coverage for workers to live comfortably during unemployment.
It is also intended to boost the competitiveness of Emiratis in their labor market and achieve competitive knowledge economies by attracting, retaining, and retaining top international talent.
What is The Scope Of The Scheme
The scheme will be open to all federal and private workers except:
- Investors and business owners who own or manage their own companies
- Domestic workers
- Employees with temporary contracts
- Employees under the 18-year-old of age
- People who have been laid off from their pensions or changed their employer are considered pension-receiving.
Is registration compulsory?
On January 1, 2023 (MoHRE), the Ministry of Human Resources and Emiratisation made it mandatory for all workers to have an insurance scheme in case of job loss.
Employers of federal agencies and private sector companies can subscribe for as little as AED5 per month to the Unemployment Insurance Scheme.
Available Schemes, Premiums & Eligibility
The amount of compensation will equal 60% of the basic salary. A maximum amount of AED 20k per month is available. The amount will begin when the employee loses their employment. It will continue to be paid for the next three months or until the employee obtains a job.
Basic Salary
AED 16,000 or less
AED 5/Month/AED 60/Annum
AED 10,000/month max
Exceeding AED16,000
AED 10/Month/AED 120/Annum
AED 20,000/month max
To be eligible, the worker must have contributed the monthly premium over a minimum of 12 consecutive months, and the payments must be made on time.
Resignation cannot be the reason behind unemployment. The insurance scheme was not designed to cover employees who are terminated. An employee removed from their position due to disciplinary reasons is automatically ineligible for the insurance scheme.
The deadline for employees filing a claim is 30 days from the date they were terminated.
Providers of Insurance Schemes
The Ministry of Human Resources & Emiratization announced that the scheme will now be administered by Dubai-based insurers, including:
- 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
These are the channels that you can subscribe to:
- SMS
- Du & Etisalat
- Exchange companies
- Business Service Centres
- Bank ATM & Kiosk Machines
- Site for insurance pool (www.iloe.ae), smart application
Suspension Starting The Scheme
Any of the following situations can result in an insured worker losing his eligibility for compensation.
- If the worker’s dismissal is for reasons outlined under Federal Decree-Law No. 33 of 2021 on the Regulation of Employment Relationships with its amendments.
- Involvement in fraudulent behavior in the claims
- They work for a fictional company