UAE employees who failed to subscribe to the unemployment insurance scheme before the October 1 deadline will need to pay a Dh400 fine. Those who have subscribed to the scheme but fail to pay the premiums for more than three months face a Dh200 fine.

If the fines remain unpaid, employees will not be granted new work permits, the Ministry of Human Resources and Emiratisation (Mohre) said on Wednesday as it warned of “administrative measures”. The fines can also be deducted from their salaries or end-of-service gratuity.

Employees can check if they have incurred a fine through the Mohre app, website or business service centres. They can choose to pay the fines in instalments. Those fined can appeal the penalty, with decisions issued within 15 working days.

The Mohre said more than 6.6 million people have subscribed to the mandatory scheme as on November 15.

The ultra-low-cost job security scheme came into effect on January 1, 2023. Emiratis and expatriates employed in the federal government and private sectors will get compensation for up to three months if they lose their jobs.

New employees

Employees in private sector companies who receive their work permits after October 1 must subscribe to the scheme within four months. Failure to do so is punishable by a Dh400 fine.

Certain groups are exempted from getting unemployment insurance: Investors (business owners who own and manage their establishments), domestic workers, temporary employees, juveniles under the age of 18, citizens who are eligible for retirement, and retirees who receive pension and have joined a new employer.

The scheme is divided into two categories:

The insurance compensation can be claimed as long as the employee has been subscribed for at least 12 consecutive months. They can’t claim compensation if they leave the country or get a new job.

The compensation is paid for a maximum of three months from the date of unemployment, provided the employee was not terminated for disciplinary reasons.

The compensation amount is calculated at the rate of 60 per cent of the average basic salary in the six months prior to unemployment.

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