The UAE Govt had announced an Unemployment Insurance program to provide protection to its working community. UAE Workers who start fresh in UAE have a grace period of four months to register for unemployment insurance.
The plan necessitates all workers in the private sector as well as those working for the federal government to enroll in the program. The option of registering is open to workers employed by local government authorities, semi-government organizations and free zones.
According to legal expert Mohammed Najeeb’s comments to The National,
“There is a four-month time frame for signing up with the United Arab Emirates (UAE) unemployment insurance program for individuals who recently began working in the country, as per the ministry’s resolution No. 604 of 2022.”
According to item No. 11 of the legislation, those working after January 1, 2023 must register in the program within a four-month period. This period is from their arrival in the UAE, from the issue of their work permit, or from altering their status. This was to be done regardless of the circumstance.
He stated that new workers who began their employment beyond the October 1 deadline for registrations are also eligible for the grace period since it applies to them. After the first grace period of four months, such individuals would be subject to a punishment of Dh400 if they have not yet registered for the program, as he said.
However, according to the Ministry of Human Resources, businesses also have the option to register their staff members in the system on behalf of their employees. The registration process is the responsibility of each individual worker.
“Employees will have a renewed hope thanks to the insurance system that they will get compensation for a period of three months, which will assist them in having a good existence while they look for a new work.” Mr Najeeb said
“It will help people out when they are going through tough times financially.,” He furtheradded.
According to the concerned ministry’s announcement on Wednesday, more than 6.5 million workers have already signed up for the system that provides unemployment insurance.
