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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