In order to avoid an AED400 punishment, the Ministry of Human Resources and Emiratization (MoHRE) has advised eligible residents and citizens to sign up for the Unemployment Insurance Scheme by October 1st.
Employers may choose to register their employees, however enrollment is the employee’s duty and incurs no additional charges for the firm.
All employees in the commercial and public sectors are covered by the programme, with the exception of select groups such business owners, domestic workers, and pensioners with pensions who have switched employers.
The Involuntary Loss of Employment (ILOE) Insurance Pool website, smartphone application, kiosks, business service centres, exchange businesses, and bank mobile applications are just a few of the ways to register.
The programme offers two salary-based groups with different premiums and compensation caps. After 12 consecutive months of subscription, compensation may be requested; however, if the insured changes jobs, leaves the country, or cancels residency during the processing time, the compensation is forfeited.
If the employee was not terminated for disciplinary grounds or did not voluntarily quit, the compensation is computed at 60% of the average basic wage for the past six months prior to unemployment, up to a maximum of three months. The concept intends to strengthen the labour market, provide social safety for employees while they look for new jobs, and draw top talent to the nation.
