Failure to enroll in the Employment Insurance Scheme in the UAE will result in an employee being fined 400 dirhams.
ABU DHABI (Newshub Update Latest News 2 January 2023) In the United Arab Emirates, employees who do not take insurance against loss of employment will be fined, from January 1, 2023, registrations have been officially opened on the website. According to Khaleej Times, from January 1, 2023, all employees working in the private and government sectors must register for involuntary loss of employment, but investors, temporary contract workers, minors under the age of 18, and retirees. and have joined employment, are exempted from registration for the scheme.
Under this scheme, premiums and compensation will be given in 2 categories, in which the first category includes employees whose basic salary is less than 16,000 dirhams, who will have to pay 5 dirhams per month as insurance premium and A monthly compensation of up to 10 thousand dirhams will be given, the second category includes those whose salary is more than 16 thousand dirhams, who will deposit 10 dirhams per month as insurance premium, they will get a monthly compensation of up to 20 thousand dirhams.
While the policy term is available for one or two years, subscription from Dubai Insurance is free but other channels such as exchange houses and banks may charge additional fees for the service, said Joanna Matthews Taylor, partner at Baker McKenzie. that failure to enroll in an unemployment insurance scheme will result in a fine of 400 dirhams on the employee and when employees fail to enroll in an insurance scheme and do not pay any contribution for more than three months They will be fined an additional 200 dirhams.
Similarly, a call center representative of the Involuntary Loss of Employment Insurance Scheme confirmed to Khaleej Times that employees must subscribe before June 30, 2023, failing which they will be charged a fine of 400 dirhams, payable through the same channels. Can, from whom employees buy the policy. Joanna added that subject to employees contributing to the scheme for at least 12 months, scheme benefits will cease on the earlier of the date the employee finds alternative employment in the UAE or the last day of employment.
This will also include the period from the last three months, Employers are not required to register their employees in an insurance scheme nor are employers required to pay any contribution to any scheme as the scheme is only for the employee. However, employers should remind their employees of their responsibility to register.
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