The lack of a national pension schemes is forcing Emiratis to quit their private sector jobs and close down their businesses, in favour of work in government organisations, it has been revealed.
Findings come from a study currently being carried out by The General Authority for Pensions and Social Insurance of self-employed nationals show that many young people were closing their own small businesses to look for pensionable jobs in the public sector, according to UAE daily Gulf News.
The study also found that many Emirati families were living under the poverty line because the breadwinner had abandoned their private sector job, said Federal National Council pensions committee chairwoman Dr Aisha Al Roumi.
The study comes in the wake of a Federal Cabinet decision earlier this month to set up a national pension system for self-employed Emiratis as a raft of new measures to better protect the national workforce.
Obaid Humaid Al Tayer, Minister of State for Financial Affairs said: “The study is expected to be completed by the end of this month and our recommendations will be submitted to the Cabinet.”
Al Tayer said introducing a pension scheme for self-emplyed would encourage Emirati professionals to stick to their own businesses, or their private sector jobs, rather than to look towards government jobs in search of pensions.
The pension issue comes just weeks after the Ministry of Labour passed a new regulation banning private sector companies from making Emiratis redundant for reasons other than poor performance.
Abu Dhabi The Federal National Council on Tuesday voiced concern over the dismissal of a number of Emiratis from the private sector and questioned the Labour Minister about the measures his ministry has taken to tackle the issue.
A total 64 of Emiratis had filed labour-related complaints with the Ministry of Labour between the start of January 2008 and Feb. 15, according to Saqr Gobash Saeed Gobash, the Minister of Labour.
“Out of around 15,000 Emiratis employed by the private sector, only 37 workers complained to the ministry over dismissal. Twenty-seven others complained over unpaid salaries and other dues,” he said.
“Of these complaints, 16 were settled amicably, 12 filed with the court and nine were shelved after the complainants either failed to show up at the ministry of withdrew their complaints,” Gobash added.
The decision to ban private companies from terminating the working contract of Emiratis came after 20 local employees were made redundant from Al Futtaim Group “in light of the current global financial crisis”.
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