Introduction

In today’s world of work, we all know that life is full of surprises. Anything can happen, and one of those surprises can be losing your job. Losing your job can be a financially and emotionally distressing experience. Fortunately, in the United Arab Emirates, there is a system in place that aims to protect workers’ rights and provide support during tough times. This system is “Unemployment Insurance,” and we will take a closer look at it and how it can positively impact your financial life.

Understanding Unemployment Insurance: Safeguarding Your Future

Imagine for a moment that you suddenly lose your job without any prior warning. This is a scenario no one wishes for. This is where “Unemployment Insurance” comes into play to give you security and stability. This system means that you will receive financial support when you need it most, as per Ministerial Resolution No. (604) of 2022. If you lose your job due to termination or resignation, you can receive compensation that can amount to up to three months of your basic salary as an insured worker. This can make a real difference in your life and your family’s life. 

Who Qualifies for Insurance?

The beauty of this system is that it includes everyone. Whether you work in the public or private sector, you are eligible to subscribe to Unemployment Insurance. The requirements are minimal and straightforward. All you need to do is pay a simple monthly premium based on your basic salary, and that’s it! Moreover, you can choose how to pay your subscription, whether annually, semi-annually, or even monthly. 

Subscription Value in the Insurance System

The subscription value in the Unemployment Insurance system depends on the basic salary of the worker. There are two categories of subscription: 

  1. The first category: The insurance premium is set at AED 5 per month for those earning a basic salary of less than AED 16,000, which is AED 60,000 annually. 
  2. The second category: The insurance premium is set at AED 10 per month for those earning a basic salary of AED 16,000 or more, which is AED 120,000 annually. 

Unemployment Insurance: Additional Benefits

If you’re looking for extra security and benefits, you can also choose to enhance your coverage with your insurance service provider. You can tailor your policy to include more benefits with additional approval. This can be beneficial for individuals seeking more stability and protection. 

Subscription Channels: Convenience and Ease

Things have become easier than ever. You can easily subscribe to the Unemployment Insurance system through various available channels, including the Insurance Authority’s website and its smart application, smart applications of banks and financial institutions operating in the country, exchange companies, self-service machines, business centers, and communication companies operating in the country, such as du and Etisalat, and even through direct text messages. You can start your financial protection journey with ease. 

Disqualification and Suspension of Compensation

The insured worker loses eligibility for compensation in the following cases: 

  • If they are terminated for disciplinary reasons according to labor regulations in the private sector and the federal government, and any other related legislations. 
  • If the claim for compensation is found to be fraudulent or deceptive. 
  • If it is revealed that the establishment where the worker was employed is fictitious. 
  • Compensation is suspended if the employee takes on a new job during the compensation eligibility period. 

Expert Opinions

Amira Saqer (PLEADING LAWYER)

Amira Saqer shares her legal opinion regarding the Unemployment Insurance system by stating, “The Unemployment Insurance system represents a significant step towards protecting workers’ rights and ensuring their financial stability in case of job loss. This system provides valuable financial support to workers, alleviating the financial burdens that may result from unemployment. Furthermore, expanding coverage with insurance providers can offer additional benefits and stability to policyholders. This system encompasses all workers, regardless of the sector they work in, making it one of the most important social measures that enhance financial security in the United Arab Emirates.

Ahmed Saber (Head of Litigation Department)

Ahmed Saber provides his legal perspective on the Unemployment Insurance system, saying, “The Unemployment Insurance system is a positive step in enhancing social welfare for workers in the United Arab Emirates. This system instills confidence in the financial future of workers and provides them with additional protection. By offering financial compensation in case of job loss, workers can rely on the necessary support to meet their own and their families’ needs. I always encourage clients, as a specialized lawyer, to explore means of ensuring their financial security, and the Unemployment Insurance system is one valuable option.

Conclusion: Take Care of Yourself and Your Family

We cannot predict what life will bring, but we can take a step to protect ourselves and our families. Unemployment Insurance is a powerful tool to ensure that you won’t find yourself in a financially challenging situation if you lose your job. Secure your financial future and subscribe today to experience peace of mind and security.