Unemployment Insurance in UAE: A positive move to social security & talent safety.
14 October 2022
Shuchi Goel
The new Federal Labour Law 13 of 2022 marks the UAE's first move
toward maintaining social security for job seekers and the unemployed. The law
applies to both private and public sector employees. It excludes only
Investors, Domestic workers, Temporary contract workers under 18 years old, and
retirees who receive pensions and join new employment. This law has been
implemented to safeguard regular income for a limited period during their unemployment
until new job opportunities come. This insurance scheme is associated with the
major insurance companies licensed by the central bank, meeting all the terms
and conditions of insurance providers in terms of unemployment.
The law introduces an unemployment insurance scheme, which aims to
compensate the employee with cash for a limited period during their
unemployment. According to this Law, the employees are eligible to get
compensation every month of 60% of their subscription salary with a maximum of
AED 20,000 monthly for three months from the date of unemployment. The total
covering period shall not exceed 12 months during the service of an employee.
All employees will be eligible for Compensation if their insurance
subscription is more than 12 months. Eligibility conditions vary if the
employee has been dismissed for disciplinary reasons, per labour law, yet the
compensation claim remains legitimate.
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