Urgent “unemployment insurance” system to avoid financial fines

Employees of the federal and private sectors of government who are covered by the "unemployment insurance" system were urged by the Ministry of Human Resources and Emiratisation to sign up for the programme in order to avoid penalties that will be imposed on non-subscribers after 31 days, more specifically by the first of next October.

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The Ministry noted that since the fine for non-subscription is 400 dirhams in the most recent issue of its "Labour Market" magazine participation in the unemployment insurance system is thought to be the responsibility of the employee and not the employer. The Ministry pointed out that the insurance system includes workers in the private sector. Exceptstic workers, temporary contract workers, minors under the age of 18, retirees who take a pension and start new employment, and investors who own the business where they work, all federal employees are citizens and residents.

The system of unemployment insurance's objective.

The Ministry of Labour stated that the system aims to secure a temporary income for the insured for three months when they are unemployed, equating to 60% of their average basic wages in the last six months beforer loss of employment (for non-disciplinary reasons), supporting the professional path and providing living stability in the laborket without requiring employers to incur any highsts.
The Ministry states that the system's subscription fees are nominal, amounting to five dirhams per month for those whose basic salaries are less than or equal to sixteen thousand dirhams and ten dirhams per month for those whose basic salaries are greater than sixteen thousand dirhams, with the worker having the option to choose the payment schedule. explaining that those who are covered by the unemployment insurance system can register in the system by visiting the website of the insurance complex, the intelligent application "aloe"kiosk" devices, ATMs, business service centersanies Exchange, banking applications, in addition to telecom company bills, and via text messages.
She emphasizedorder to be eligible for compensation, a worker must have been enrolled in the insurance for at least 12 months and submit a request within 30 days of being fired from his job, provided that the termination was not due to disciplinary action or resignation and that the compensation claim was not made fraudulently or through deceit. A worker's compensation will also be suspended the moment they start working for someone else or depart the country.
"The establishment and mandatory implementation of the insurance system for federal government and private sector employees against unemployment is also one of the most significant decisions and positive transformations that the laborket in the country has recently witnessed, as it provides a low-cost job security umbrella that supports the professional path and living stability of workers in the country," the ministry stated. She noted that this system is one of the pillars of the system of legislation aimed at attracting and motivating Emirati cadres and competencies with international skills and providing them with the best means of care. "In a step that would enhance the competitiveness of the labour market by relying on innovative mechanisms without burdening employers with any costs," she said. It is regarded as an essentialin the expansion of the nation's economic sectors.
Theinistry noted in mid-July that the total number of workers and employees participating in the unemployment insurance system has surpassed five million and 140,000 since the start of this year, with an increase of more than 140,000 workers and employees who joined the insurance system during the past month. The Ministry also emphasized unemployment insurance system Work does not include or cover workers employed under the "temporary contracts" system, according to the article.

decisions and laws governing the private sector laborket.

She also noted that the UAE's allocation of legislation and decisions to the private sector laborket, including the law governing laborations, which took effect on February 2, 2022, as well as its ecutive regulations and ministerial decisions implementing them, provided a strong impetus to efforts to increase the market's flexibility, competitiveness, and productivity and to offer assurances to protect the rights of the clerical workforce. It has developed into the region's strongest, swiftest, and most flexible vehicle.

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