Residents in the UAE will be given unemployment pay.

Residents in the UAE will be given unemployment pay.

People who lose their jobs will be eligible for up to Dhs20,000 a month to help with living expenses under the scheme. People who lose their employment in the UAE will get a minimal cash allowance each month under a new social support scheme.

Emirati and foreign employees in the private and public sectors will be covered by the required plan, which will begin in January 2023.

Unemployment insurance was once thought to apply limited to Emiratis when it was first announced. On Thursday, May 12, Minister of Human Resources and Emiratisation Abdulrahman Al Awar emphasized that the unemployment insurance scheme will cover all nationalities working in the UAE.

Dr. Abdulrahman Al Awar, the Minister of Human Resources and Emiratisation, announced the new Federal Law on Thursday.

Every employee will contribute to a company-sponsored insurance initiative, according to the document. Officials have yet to specify how the payment will be paid, such as through their employer or deducted from their income.

Employees would get 60% of their base wage each month for a limited time, up to Dh20,000 per month, to aid with living expenses.

Most people will spend substantially less than the maximum amount specified. Employees will be offered insurance packages from local insurance companies.

”Investors, domestic workers, those working based on temporary contracts, employees below 18, and retirees are exempt from the new policy,” Dr. Al Awar said.

“Monthly support will stop once a new job has been secured and employees can resume their previous insurance packages or upgrade them.”

After a set period of time, if the terminated employee has not found another position, the financial assistance will be terminated. The length of this period has yet to be determined.

When the ministry issues the regulatory procedures, the details of how the new system will be implemented will be known.

Although the payouts are expected to be minimal, the installation of a safety net, according to Shahram Safai of Afridi & Angell legal advisors, which practises employment law, is a crucial occasion.

 

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