Urgent.. A fine of 400 dirhams was imposed on employees due to unemployment insurance

The Ministry of Human Resources and Emiratisation, in the UAE, has announced the activation and application of penalties and penal procedures on any employee or worker in both the government sector or the private sector, when they do not participate in the newly developed system of “unemployment insurance”, where the procedures were defined. penal.

Penalty for refusing to participate in the unemployment insurance system:

First: Imposing a fine of 400 dirhams on those who abstain from participating.

Second: Imposing a fine of 200 dirhams on employees who are not committed to paying the value of the premiums after subscribing to the insurance system against unemployment for a period of three months, with a fine of 200 dirhams.

Objectives of the unemployment insurance system:
The head of the Labor Complaints Department at the Ministry, Dr. Ahmed Al-Qarah, said in media statements: “The launch of the unemployment insurance system comes in implementation of the Cabinet’s decision regarding the system issued based on Federal Decree Law No. 13 of 2022, regarding unemployment insurance. The system aims To provide protection cover for workers in the (private) and (federal governmental) sectors, by compensating them with cash for a specified period not exceeding three months for each claim, in the event that they lose work as a result of terminating their services for reasons beyond their control.

The system also aims to provide occupational stability for all workers in the UAE by creating a safe, simple and available umbrella for everyone, at a low cost, that supports the professions of workers in the state, and ensures their living stability, by relying on innovative mechanisms that do not incur employers with additional costs, and provide a balance in the labor market. It enables the achievement of the strategic objectives of the state and supports the continuity of economic activities.

Categories excluded from the obligation to participate in unemployment insurance:
As for the categories excluded from the obligation to participate in the system, Al-Qarah explained that the unemployment insurance system is mandatory for all workers in the private and federal sectors, citizens and residents, with the exception of five categories that are excluded from the system, which are: the category of investors, and employment. Assistance, the worker with a temporary contract, juveniles under 18 years of age, and retirees who receive a retirement pension and have joined a new job, in addition to that it does not include workers in local government agencies, and therefore workers in the two sectors must participate in the system starting from the first of next January (2023). .