Unemployment Insurance Scheme – Mandatory Requirements

The UAE government issued Federal Decree Law No. 13 of 2022 Concerning Unemployment Insurance Scheme (the “Scheme”) which was implemented effective 1 January 2023. 

The Scheme is mandatory for all employees in the private and public sectors but currently is only available for employees who have a MOHRE work permit or are part of the federal government; i.e. it is not yet available for employees in free zones and semi-government companies.

As part of the Scheme, employees will be eligible to receive compensation upon becoming unemployed, subject to certain requirements being met.  

Failure of applicable employees to register by 30 June 2023 and/or make the applicable subscription will result in fines and other penalties being issued to any non-compliant employees. 

Although the obligation to register with the Scheme is the individual employee’s responsibility, it is recommended that employers notify their employees of the Scheme and highlight their obligations in order to ensure that penalties are not imposed against them. 

Our Employment & Incentives practice would be happy to assist with preparing employee communications and frequently asked questions which can be shared with employees to explain the provisions of the Scheme including:

1. The purpose of the Scheme;
2. How employees can register;
3. The calculation of subscription amounts and how these can be paid;
4. Benefits to employees under the Scheme; 
5. How the insurance claims can be made; and
6. The consequences of non-registration.

 How can we help?

If you require any support or are unsure whether the Scheme is applicable to your employees, please do not hesitate to reach out to us.