UAE unemployment scheme comes through: Failure to register will attract fines

UAE employees, irrespective of whether they are working in the private sector or the federal government, including both Emiratis and foreign nationals, must register for the involuntary loss of employment scheme by June 30, 2023.

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According to the Khaleej Times, UAE employees will have to pay a hefty penalty amount if they don’t register in the involuntary loss of employment scheme. From January 1, 2023, workers in the United Arab Emirates can register themselves under the insurance scheme.

All workers are required to register themselves for the involuntary loss of employment scheme. Employees working in the private and federal government sectors, both Emiratis and foreign nationals, must register for the involuntary loss of employment scheme.

Only the following people are exempt from this employment insurance scheme: investors, domestic helpers, temporary contract workers, retirees who are eligible for a pension and have started a new job, and juveniles under the age of 18.

The employees can be punished if they fail to register for the involuntary loss of employment programme.

Joanna Matthews-Taylor, partner in the Dubai office of Baker McKenzie and head of employment practice, confirmed to Khaleej Times that by June 30, 2023, employees must register. If they fail to do so, they would be required to pay a penalty of Dh400 using the same methods they used to acquire the policy. She further said that employees have to contribute to the scheme for at least 12 months. Additionally, it is not incumbent on the employer to register their employees in this scheme. A representative of the call centre of the Involuntary Loss of Employment (ILOE) insurance scheme also confirmed this news to Khaleej Times.  

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