Employees who are not committed to participating in the unemployment insurance system or who are not dedicated to paying their due premiums according to the payment periodicity established by them will be subject to financial sanctions, as declared by the Ministry of Human Resources and Emiratization. These fines will be imposed beginning immediately.
The legal deadline for participating in the system expired in October of last year, ten months after the system went into effect on January 1st. This period of time was granted to all workers who were included in this system so that they could participate in it. This allowed them to avoid financial fines and to take advantage of the benefits that were made available to them. This is made possible by the system.
A press statement issued by the Ministry of Finance provided the following explanation: "The financial fines that were applied include approximately 14% of employees who are not committed to the system. Each employee who did not participate in the system resulted in a fine of 400 dirhams, and each employee who did not commit to paying the periodic installments resulted in a fine of 200 dirhams."
The Ministry has stated that all employees who have been subjected to financial fines are able to pay the amount of this fine by using the Ministry's smart application, by visiting the Ministry's website, or by going to one of the approved business service centres. It is important to note that the Ministry's digital channels offer the capability of submitting requests to pay the fine in installments, with the intention of reducing the burdens that are placed on customers.
The Ministry is able to consider requests for exemption from the fine if the applicant submits papers that support the application, and the applicant is notified of the result through the proper channels of the Ministry within fifteen working days of the day the application was submitted.
In order to avoid the administrative measures that will be taken against those who are not committed to paying the required fine, the Ministry has issued a call for the prompt payment of the fine. Those who do not pay the fine will not be granted a new work permit, and the value of the fine will be deducted from the worker's wages or from his end-of-service gratuity.
On the other hand, the Ministry explained that the number of people who subscribe to the unemployment insurance system has reached more than 6 million, and 700 thousand of those who are covered by the system are workers in the private sector and the federal government sector. These workers include both citizens and residents. However, the investor, who is the owner of the establishment, is not eligible for registration in the system. Those who are not eligible include domestic workers, temporary contract workers, juveniles under the age of 18, and retirees who have joined a new job.
A social protection umbrella is provided by the system, which ensures that workers in the state continue to have a decent life even when they are unemployed. This is accomplished by providing the insured with a cash sum for a period of three months in the event that he is unemployed and until an alternative job opportunity becomes available.
Workers in private sector establishments who were issued work permits after October 1, 2023, were urged by the Ministry to enrol in the unemployment insurance system within a period of four months. The Ministry also mentioned that those who do not enrol in the system after the expiration of the aforementioned period will be subject to a fine of 400 dirhams.
It is important to note that the system allows for registration through a variety of channels. These channels include the website of the Insurance Complex, which is located at www.iloe.ae, the smart application of the Insurance Complex, which is called ILOE, as well as the use of Kiosk self-service machines, automated teller machines, business service centres, multiple exchange centres, and smart phone applications for banks and banking, in addition to text messages or SMS. The insurance complex call centre that is delivering the service 600599555 is the one that is responsible for billing telecommunications providers.
There are two categories that are included in the unemployment insurance system. The first category is comprised of individuals whose basic salary is sixteen thousand dirhams or less. The value of the insured employee's subscription within this category is five dirhams per month (or sixty dirhams annually), and the maximum value of monthly compensation is ten thousand dirhams.
Taking into consideration the second category, it is comprised of sixteen thousand dirhams or more from their base salary. The greatest amount of monthly compensation that can be received is twenty thousand dirhams, and the subscription pricing for this category is ten dirhams each month, which is equivalent to one hundred and twenty dirhams annually.
Compensation is due provided that the period of the insured’s subscription is not less than 12 continuous months in the insurance system, and the insured’s right to claim the compensation value is forfeited if he leaves the country or joins a new job, and the period for paying the compensation value does not exceed a maximum of two weeks from the date of the claim that is consistent with the conditions and standards. This is a right.
The insurance programme provides the insured with a financial sum for a period of time that does not exceed three months, provided that the insured does not quit from his position or be fired for grounds related to disciplinary actions.
A calculation is made to determine the amount of compensation that the eligible employee will receive, and it is sixty percent of his basic wage from the six months prior to his unemployment.
