New UAE unemployment insurance scheme: How it will help workers

New UAE unemployment insurance scheme: How it will help workers

The policy will provide support to both citizens and expats in the public and private sectors

Published: Sun 22 May 2022, 2:50 PM

The new mandatory unemployment insurance scheme announced by the UAE government will provide workers with peace of mind and attract the best talents to the region, according to local experts.

Earlier this month, a federal law was announced which makes it mandatory for employees to have an unemployment support insurance in both the private and public sectors starting January 2023. This will provide workers, who lose their jobs under unforeseen circumstances, cash support every month for a limited period until they find an alternative.

“For the working population, especially in a country like the UAE, unemployment insurance brings a level of economic stability to an individual and their family,” said Anselm Mendes, executive director, sales and technology, the Continental Group. “It provides them with the much-needed time to seek employment while helping them manage their financial obligations in the interim. This, combined with the various other reform measures by the government on the visa and labour front, will help make the UAE a much more attractive destination for talent.”

The redundancy payment will enable insured workers who suddenly lose their jobs to