The United Arab Emirates announced the setting of a date for collecting a fine for employees who do not participate in unemployment insurance. It also clarified the amount of the fine and the cases of forfeiture of the right to obtain compensation. It also specified the steps for participating in unemployment insurance.
The day when workers who do not participate in unemployment insurance will begin to be charged a fee.
The United Arab Emirates has made public the date when it will begin levying a charge on employers whose workers do not take part in the country's unemployment insurance program. In addition to this, it made the amount of the fine and the circumstances under which the right to demand compensation may be lost more clear. It also detailed the procedures that must be followed in order to qualify for unemployment insurance.
When is the fine imposed on employees who do not participate in unemployment insurance?
In the United Arab Emirates (UAE), the Ministry of Human Resources and Emiratisation has announced that beginning on the 30th of June in the following year, a financial penalty will be imposed on employees in both the public and private sectors who are not registered with the unemployment insurance system in accordance with the provisions of the decision. This will be done by imposing financial penalties on employees who are not participating in the unemployment insurance program. The Ministerial Council on the Unemployment Insurance System mandates that all workers working in the private sector and employees working in the federal government sector, as well as citizens and residents, are required to participate in the unemployment insurance system prior to the date of June 30. This mandate was issued by the Ministerial Council on the Unemployment Insurance System.
The value of the fine for employees who do not participate in unemployment insurance
After that, a fine of 400 dirhams will be assessed for each employee who did not participate if the deadline was not extended. This will occur only if the deadline was not extended.
Steps to subscribe to unemployment insurance
The Ministry has indicated that employees can subscribe online to the unemployment system in a total of 4 steps. These steps include going to the website of the insurance pool (which can be found at "www.iloe.ae"), clicking on the word "subscribe here" to access the registration page, and then describing the nature of the industry in which the employee is employed with an entry. Personal information such as name and phone number, as well as a verification code that will be given to the user's phone in the form of a text message, will need to be entered, after which the user will be sent to a page where they may input their email address and make a payment in order to successfully complete the registration process.
Categories of unemployment insurance
The Ministry indicated that there are two categories under the unemployment insurance system. The first of these categories includes those whose basic salary is sixteen thousand dirhams or less, and the value of the insured employee's subscription within this category is five dirhams per month (sixty dirhams annually), and the maximum value of the monthly compensation is ten thousand dirhams; however, the second category includes those whose basic salary exceeds sixteen thousand dirhams, and the value of the insured employee's subscription within this category is.
Cases of forfeiture of the right to compensation for unemployment insurance
If the insured person moves to a new location or starts a new employment after filing a claim, he or she will lose the right to make a claim for the compensation value, and the length of time during which the insured person will receive payment for the compensation value will not exceed two weeks at any point. The amount of compensation that a qualified worker is entitled to receive is equal to sixty percent of the employee's basic wage average for the preceding six months before the person became unemployed.
