UAE: Over 2 million sign up for unemployment insurance

UAE: Over 2 million sign up for unemployment insurance

It’s an ultra-low-cost security net that protects workers if they lose their jobs

Published: Tue 16 May 2023, 5:25 PM Last updated: Tue 16 May 2023, 5:50 PM

More than 2 million people, including 40,000 Emiratis, have subscribed to the unemployment insurance scheme.

Abdulrahman Al Awar, Minister of Human Resources and Emiratisation, addressed the Federal National Council (FNC) on Tuesday, bringing these facts to light.

Eligible workers in the UAE have to subscribe to the scheme before June 30 to avoid penalties. It’s an ultra-low-cost security net that protects workers if they lose their jobs.

Al Awar told the FNC that employees can negotiate and get additional benefits from their insurance companies.

This is among three main flexible policies aimed at increasing the stability and flexibility in the labour market. Others include:

Worker protection insurance system

Under this system, employers are required to provide insurance coverage to protect workers in the event of company insolvency or inability to pay employee dues. The insurance covers various contingencies, including repatriation expenses, end-of-service benefits, transportation costs in case of death or work-related injuries, and unpaid salaries.

The Ministry of Human Resources and Emiratisation reported that 96 per cent of registered workers are currently covered by this insurance.

Wage protection system

Another innovative mechanism known