UAE to launch Unemployment Insurance Scheme in 2023

UAE to launch Unemployment Insurance Scheme in 2023

DUBA - The Ministry of Human Resources and Emiratisation (MoHRE) signed today an agreement with a group of nine local insurance companies, to launch the framework of the new Unemployment Insurance Scheme, in line with the Federal Decree Law No. 13 of 2022 and the relevant Cabinet Resolutions.

The new insurance scheme aims to provide protection for employees in the private sector and the UAE’s federal government by providing them with a cash compensation for a limited period not exceeding three months for each claim in the event of job termination for reasons beyond their control.

It also creates a safety net that supports employees in their career path and ensures their livelihood by relying on mechanisms that do not incur additional costs for employers and is paid by the employee himself and provide a balance in the job market that allows achieving the UAE’s strategic goals and supporting the continuity and growth of economic activities.

Protection and Empowerment

The agreement was signed in the presence of Dr. Abdulrahman Al Awar, Minister of Human Resources and Emiratisation, and Butti Obaid Al Mulla, Chairman of Dubai Insurance Company. The agreement was signed by Khalil Al Khoori, Under-Secretary for Human Resources Affairs at MoHRE, and Abdul