UAE’s unemployment benefits scheme applicable to all public and private sector employees

The UAE’s new unemployment insurance scheme will include all private and public sector workers, according to Dr. Abdulmannan Al Awar, Minister of Human Resources and Emiratisation.

At a media briefing on Thursday, the minister highlighted the Cabinet’s adoption of a federal law on the unemployment insurance scheme through insurance packages, which aims to ensure the availability of income for unemployed workers until an alternative job opportunity are made available.

Dr. Al Awar said that the new scheme will serve to “attract and retain the best international talents and skilled workers.”

He said that the scheme’s unique guarantees, will be offered to all workers in the country and that the Ministry of Human Resources and Emiratisation will play a central role in this scheme to protect labour rights and improve the business environment.

“We have ensured that the scheme is flexible to allow the workers to agree on additional benefits with the insurance service provider, to reduce risks in the labour market for individuals and increase flexibility for companies to deal with changes, thus enhancing competitiveness and supporting stable living standards for families even during unemployment,” said Dr Al Awar, according to state news agency WAM.

HE Dr. Abdulrahman Abdulmannan Al Awar, Minister of #MOHRE, discussed the decision to raise Emiratisation levels by 2% annually for skilled jobs in private sector establishments with 50 or more employees during a media briefing organised by the ministry. #UAE pic.twitter.com/ssmK0YQf77

— MOHRE_UAE وزارة الموارد البشرية والتوطين (@MOHRE_UAE) May 12, 2022

Dr Al Awar added that the ministry will develop a mechanism for creating and operating the scheme, its application and subscription fees, and any requirements or procedures to ensure its success and governance. The ministry will also monitor the work of insurance service providers.

Recently the UAE Cabinet adopted resolutions and an incentives package to enhance the participation of Emirati workers within the private sector.

The incentives include reducing the service fees of the Ministry of Human Resources and Emiratisation by 80 per cent for private sector establishments, which accomplish major achievements in terms of recruitment and training of Emiratis.

The Cabinet approved increasing the Emiratisation rate to 2 per cent annually from high-skilled jobs in establishments that employ 50 workers or more. The step aims at creating more than 12,000 job opportunities annually for UAE citizens.

Non-compliant companies will have to pay Dhs6,000 monthly, starting from January 2023, for every citizen who has not been employed.

The ministry hopes to achieve an increase in the overall rate of Emiratisation of 10 per cent by 2026.
The move to increase the percentage of the Emirati workforce comes under the NAFIS federal programme that aims to increase the competitiveness of the Emirati workforce and facilitate the private sector employment of UAE citizens.