UAE: Over 2mln sign up for unemployment insurance

UAE: Over 2mln sign up for unemployment insurance

UAE - 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:

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.

Another innovative mechanism known as the wage protection system ensures timely and secure payment of employee salaries. This system requires companies and establishments to fulfil wage obligations through authorised financial institutions.

The Ministry of