The scheme will be effective from early 2023.
UAE expats and citizens alike will be eligible to receive unemployment insurance, a new scheme that aims to protect employees against the risk of job loss.
Dr. Abdulrahman Al Awar, Minister of Human Resources and Emiratisation, confirmed that employees who lose their jobs under unforeseen circumstances will receive cash support for a period of time.
The scheme applies to all nationalities in private and public sectors. The goal is to ensure stability in the workplace. The scheme will be effective from early 2023.
The new scheme comes as part of sweeping reforms in the UAE that aims to attract and retain talent and ensure work stability.
His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice-President and Prime Minister of the UAE and Ruler of Dubai, had announced the scheme to protect employees against job loss.
The scheme will offer a cash amount for a limited period of time to the insured person who suddenly loses his/her job.
Under the insurance scheme, workers laid off jobs in the UAE will be granted 60% of their basic salary monthly (for a limited period) as an interim earning, while on the lookout for another job.
However, investors, domestic workers, workers with temporary contracts, employees under 18 years of age and those retired with pensions who joined a new job, are EXCLUDED from the unemployment insurance plan.
The law aims to enhance the competitiveness of Emiratis in the job market, as well as “attract the best international talent to the UAE”.
News Source: Khaleej Times
