UAE Introduces Unemployment Insurance Scheme with Four-Month Grace Period for New Workers

The UAE has introduced a new program allowing individuals who lose their job to receive a monthly cash payment. 

For workers starting new jobs in the UAE, there is a four-month grace period to sign up for the mandatory unemployment insurance scheme, applicable to all private sector and federal government employees. Those in free zones, semi-government, and local government bodies have the option to register. 

Legal adviser Mohammed Najeeb stated this provision is in accordance with ministerial resolution No. 604 of 2022. Over 6.5 million employees have already enrolled in the system.

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