Patrick Obeid
Patrick Obeid
Senior Associate

The UAE authorities have announced an extension to the deadline for employees to enroll in the national Unemployment Insurance Scheme. Previously, the deadline was set for the end of June, with fines to be imposed starting from July 1.

According to a circular from the Ministry of Human Resources and Emiratization, fines will now be issued only to individuals who are not registered for the service after October 1.

It is the responsibility of each employee to complete their registration. Failure to enroll before the revised deadline may result in fines of Dh400 ($108).

The scheme provides coverage for male workers in the federal and private sectors, including UAE citizens and residents. However, individuals who own the company they work for, domestic staff, temporary contract workers, those under 18 years old, and retirees receiving a pension but who have resumed employment are exempt from the scheme.

The monthly subscription fee for the scheme does not exceed Dh5 for workers earning a basic monthly salary of Dh16,000 or less. For workers earning more than Dh16,000, the fee does not exceed Dh10 per month. Workers also have the option to subscribe to additional insurance benefits.

To be eligible for compensation in the event of job loss, the insured individual must have been registered in the Unemployment Insurance Scheme for a minimum of 12 consecutive months.

Moreover, the insured person must submit a compensation application within 30 days of leaving their job, provided that their employment was not terminated due to disciplinary reasons, they did not resign voluntarily, and their compensation request is not found to be fraudulent.

This article, together with any commentary, does not constitute legal advice. It is provided solely for information purposes on a complimentary basis, without consideration of any specific objectives, circumstances, or facts. It reflects then the current views of the writer which may modify in time and based on differing objectives, circumstances, or facts. Access to this article does not form any attorney- client relationship.

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