A system that aims to provide professional stability for workers in the country

400 dirhams fine for refusing to participate in the “unemployment insurance”

The value of the monthly insurance premium ranged between 5 and 10 dirhams.

From the source

The Ministry of Human Resources and Emiratisation reported that penal measures have been imposed on the worker or employee in the public and private sectors, for not committing to participate in the “unemployment insurance” system, with a fine of 400 dirhams, or for non-compliance with paying installments after subscribing to the system for a period of three months, with a fine. 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. The system aims To provide protection cover for workers in the (private) and (federal governmental) sectors, by compensating them with cash for a specified period not exceeding three months for each claim, in the event that they lose work as a result of terminating 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 available umbrella for everyone, at a low cost, that supports the professions of workers in the state, and ensures their living stability, by relying on innovative mechanisms that do not incur employers with additional costs, and provide a balance in the labor market. It enables the achievement of the strategic objectives of the state and supports the continuity of economic activities.

As for the categories excluded from the obligation to participate in the system, Al-Qarah explained that the unemployment insurance system is mandatory for all workers in the private and federal sectors, citizens and residents, with the exception of five categories that are excluded from the system, which are: the category of investors, and employment. Assistance, the worker with a temporary contract, juveniles under 18 years of age, and 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 the two sectors must participate in the system starting from the first of next January (2023). .

He stressed that workers or employees are obligated to participate in the system at their own risk, and the role of the employer is to guide and motivate them to participate in the system only, pointing out that punitive measures have been defined for the worker in the event of his non-participation in the system, as in the event of non-compliance with participation is imposed. The worker shall have 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-Qara added that there is a state of optimism about the great response of workers and employees with participation in the system and commitment to paying premiums, and penal measures 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 16,000 dirhams or less, and the monthly insurance premium for this category is five dirhams per month, at 60 dirhams annually, and the second category, whose monthly salary is 16 thousand dirhams And more, the value of the insurance premium is 10 dirhams per month, at 120 dirhams annually, and then the value of the subscription is proportional to all categories, whether the workers are of the first or second category, as it is within the framework of their financial ability.

And the continent added, “In the event that any worker or employee loses his work for reasons beyond his control, the insurance coverage for the first category is 10,000 dirhams per month, with a maximum, and the second category is 20,000 dirhams, which is the coverage that the worker will receive in the event he loses his job or work for reasons beyond. of his will, and thus the coverage represents 60% of the basic salary that they have subscribed to, for a period of three months from the date of unemployment.

He explained that after his participation in the system, and his compatibility with the eligibility conditions for insurance coverage, he obtains insurance coverage after the termination of his service for a reason beyond his control, provided that he did not submit his resignation, and if he joined another job, he deserves coverage upon termination of his service from the new job for reasons beyond 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 an insurance policy for employees and workers against unemployment, and 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, smart applications for 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 texting.

The unemployment insurance system is mandatory for workers in the private and federal sectors, both citizens and residents.

How to subscribe

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 the category for the person in which he can subscribe, and then he is given a choice between ways to pay the subscription, either monthly quarterly, semi-annually, or once annually, then he receives a link to pay the premium, or according to the channel through which he participates in the system, pointing out that the value of the insurance policy is subject to value added tax.

Conditions for entitlement to compensation value

1- After 12 months have passed since 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 was at the desire of the worker, he is not entitled to cover against unemployment.

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