The provisions of the scheme apply to all workers and employees in the private sector and the federal government sector within the State, and everyone is required to subscribe by purchasing an insurance policy under which the insured person insures themselves against the end of their service. The following categories are excluded:

The premium is calculated on the basis of the “subscription salary,” which is the basic monthly wage of the worker or employee on which both the premium and the compensation amount are calculated. The insurance policy is issued for a period of not less than twelve months. The “basic insurance package” covers compensation equal to 60% of the subscription salary with no additional benefits, and the insured may agree on additional benefits with the service provider and choose a suitable mechanism and frequency for paying the premiums.

The insured person becomes entitled to benefit from the insurance coverage once all of the following conditions are met together:

1. The insured person's subscription period is not less than twelve consecutive months in the scheme.
2. The insured person is committed to paying all insurance premiums according to the frequency they selected.
3. The insured person proves that their unemployment is for a reason other than resignation.
4. The insured person was not dismissed for disciplinary reasons under the legislation in force governing labour relations in the private sector and human resources in the federal government.
5. The claim is submitted within thirty days from the date of the end of the employment relationship, or from the date of adjudication of the labour complaint referred to the judiciary.
6. There is no pending work-absence complaint against the insured person.
7. The compensation claim is not made through fraud or deception, or where it is shown that the establishment in which they work is fictitious.
8. The loss of employment is not the result of non-peaceful labour strikes or stoppages, whether or not damage arose from them.
9. The insured person is legally present in the State.

Important note: payment of the compensation is suspended if the worker or employee joins another job during the compensation entitlement period.

The monthly compensation does not exceed AED 10,000 for Category One, and does not exceed AED 20,000 for Category Two.

Payment of this compensation does not prejudice any other compensations or entitlements established for the insured person under the legislation in force, such as the end-of-service gratuity.

The insured person must submit the claim to the service provider within thirty days from the date of the end of the employment relationship, by applying to benefit from the unemployment insurance, attaching the documents that prove their entitlement to compensation.

Where the insured person is entitled to compensation, the service provider must pay it within a period not exceeding two weeks from the date of receipt of the claim that conforms to the prescribed entitlement criteria and conditions, with the compensation amount transferred to the insured person's account.

Where the worker or employee fails to subscribe to the scheme, or fails to pay the prescribed insurance premiums for three months from the premium due date, they are not entitled to benefit from the scheme and must re-subscribe by purchasing a new policy effective from the purchase date, together with paying all amounts due from them:

These amounts are collected by deduction from the insured person's account designated to receive their wage under the Wage Protection System, or from the end-of-service gratuity. The prescribed penalties are imposed with effect from 1 October 2023. The Minister may allow the penalties to be paid in instalments or exempt the insured person from them.

If it is established that the insured person submitted incorrect data regarding the subscription salary, their contractual relationship with the employer, or the circumstances of the end of their service, the service provider is entitled to recover the entire compensation paid to them, without prejudice to their being subject to any penalties or sanctions under the legislation in force.

Where collusion between the employer and the insured person to obtain insurance benefits is established, an administrative fine of AED 20,000 per case is imposed on the establishment, without prejudice to other penalties and sanctions. The courts of the United Arab Emirates have jurisdiction to hear and decide any dispute arising from the implementation of the scheme.

• Federal Decree-Law No. 13 of 2022 concerning Insurance against Unemployment.
• Cabinet Resolution No. 97 of 2022 concerning the Mechanisms and Controls for Implementing the Unemployment Insurance Scheme.
• Ministerial Resolution No. 604 of 2022 concerning the Unemployment Insurance Scheme.
• Ministerial Resolution No. 340 of 2023 concerning the amendment of the timing for imposing the penalties associated with the Unemployment Insurance Scheme.
• Regarding the definition of “disciplinary dismissal” referred to therein: Article 44 of Federal Decree-Law No. 33 of 2021 on the Regulation of Labour Relations.

AWADH ALMHEIRI LAW FIRM AND LEGAL CONSULTATIONS is ready to guide you through the subscription procedures, submitting the claim, and protecting your rights within the statutory time limits.

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