60,000 UAE employees signed up for unemployment insurance in first two days reports state news agency WAM.
The programme was implemented through a federal decree, which relates to unemployment insurance that does not incur any additional costs for employers.
The scheme aims to provide financial security to workers and professionals in the public and private sectors in case of job losses.
UAE unemployment insurance
In the first two days, 86 percent of participants chose to sign up via the website, one of seven channels provided by the Dubai Insurance Company, which represents the insurance complex that is in charge of providing insurance services against unemployment.
Other subscription channels include the smart application of the insurance complex, self-service kiosks, businessmen service centres, Al Ansari Exchange, and smartphone applications of banks in the country, as well as telecom bills.
Ninety percent of participants chose to subscribe to the scheme annually.
This option is given to two categories of individuals who are covered by the insurance.
Two categories of unemployment insurance are available, depending on the worker’s salary.
UAE Unemployment insurance Category A
Category A costs AED5 per month. It can be paid monthly, quarterly or annually.
This category of insurance is open to any employee who has a monthly salary of AED16,000 a month or below.
In the event of losing their job UAE workers would be entitled to 60 per cent of their average basic salary, calculated on an average of the six months leading up to unemployment.
The sum is capped at AED10,000 per month and is payable for three consecutive months.
The limit on unemployment insurance on this category, then, would be AED30,000 ($8,169) to be paid out on the annual fee of AED60.
UAE Unemployment insurance Category B
Category B costs AED10 per month. It can be paid monthly, quarterly or annually.
This category of insurance is open to any employee who has a monthly salary above AED16,000 a month.
In the event of losing their job UAE workers would be entitled to 60 per cent of their average basic salary, calculated on an average of the six months leading up to unemployment.
The sum is capped at AED20,000 per month and is payable for three consecutive months.
The limit on unemployment insurance on this category, then, would be AED60,000 ($16,338) to be paid out on the annual fee of AED120.
Insured amounts will not be applicable if the employee was dismissed for disciplinary reasons under the Labour Relations Law and Human Resources Law, in addition to any applicable legislation.
The exempted categories for the scheme are investors or owners of establishments, domestic workers, temporary contract workers, juveniles (under 18 years), and retirees who receive a pension and joined a new job.
According to the Insurance Pool website, in order to be eligible for compensation in the UAE, the insured must meet the following criteria:
- There must be a minimum subscription period of 12 consecutive months for the insured in the scheme. Provided that there is no interruption in the subscription for three consecutive months
- The Insured was committed to pay all the insurance premiums due on time
- The Insured proves that the reason of unemployment is not due to resignation
- The Insured may not be dismissed for disciplinary reasons under the Labour Relations Law and the Human Resources Law of the federal government in addition to any applicable legislation
- Submit the claim within 30 days from the date of loss of the work relationship or the settlement of the labour complaint referred to the judiciary
- The Insured worker should not have an existing complaint related to the absence from work.
- The Insured shall not be entitled for compensation if there has been fraud or deceit involved in his claim or if the establishment where they work for is fictitious
- The Loss of Employment should not be the result of non-peaceful labour strikes or stoppages, whether they result in harm or not.
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