Unemployment Insurance Scheme

• What is the objective of Unemployment Insurance Scheme (UIS)?

  The objective of this new insurance scheme is to provide a social protection umbrella to ensure continued decent living for the insured employees and their families for a period of time during unemployment. They will be compensated with cash amounts for a limited period and until they find an alternative job as stipulated in the Decree-Law No. (13) of 2022 regarding Unemployment Insurance Scheme.

• What is the scope of application of Federal Decree-Law No. (13) of 2022 regarding Unemployment Insurance Scheme?

  The new scheme is applicable to all employees in the federal government and the private sector in the UAE, including non-national residents

• What are the categories excluded from the scope of the Decree-Law?

  The following categories are excluded from the scope of this law:

  • Investors (owners of the establishments in which they work)
  • Domestic helpers
  • Part-time employees
  • Those under the age of 18
  • Retirees who have a retirement pension and started new jobs

• What are the conditions for entitlement to compensation?

  To be eligible for compensation an employee must meet the following:

  • The employee must have been insured for no less than 12 continuous months;
  • He must have not been dismissed from his work for disciplinary reasons, as outlined in the provisions of the Law on Regulating Labor Relations and the Human Resources Law in the Federal Government and any relevant legislation in force.
  • The compensation claim should not be through fraud or deception. If it is found that the establishment in which the employee works is not real;
  • The compensation shall be suspended once the employee joins another job during the compensation period.

• How is compensation amount calculated?

  An employee shall be entitled to compensation at 60 per cent of the employee’s ‘subscription salary’ and subject to a maximum of Dh20,000 per month, for a period of no more than three months from the date of unemployment.

• What is the period for entitlement to compensation?

  The maximum period for compensation is (3) three months for each claim, provided that the coverage period does not exceed (12) twelve months during the service of the insured in the UAE labor market

• May an insured negotiate additional benefits with the service provider?

  The Unemployment Insurance Scheme allows the employee to agree on additional benefits with the service provider (Insurance companies licensed by Central Bank of the UAE to offer this service)

• Does disbursement of compensation to an insured insured under this Decree-Law undermine any other compensation or entitlement stipulated in any law in force in the UAE?

  The disbursement of compensation to the ensured under this law shall not prejudice any other entitlements or compensations he is entitled to.