4 cases when employees won't get benefits of unemployment insurance scheme in UAE

Abdul Rahman Saeed, Staff Reporter

The UAE Digital Government (UAE DGov) has affirmed that subscribers to the Unemployment Insurance Scheme (UIS) will not be entitled to compensation in four cases.

The insured will lose eligibility to compensation in the event that he is dismissed from work for disciplinary reasons in accordance with the provisions of the law regulating labour relations in the private sector, the human resources law in the federal government and any relevant applicable legislation.

He will also lose eligibility if his claim for compensation is based on fraud, if the establishment in which the insured works is fictitious and if the insured has joined another job during the period of his entitlement to compensation.

The UIS is aimed to achieve four objectives. Firstly, providing the insured with income for a limited period during his unemployment period until alternative opportunities are available, Secondly, enhancing the competitiveness of Emirati staff in the labor market.

Thirdly, providing a social protection umbrella for workers with a view to ensuring a decent life for them and their families until a job opportunity is available.

Fourthly, attracting the best global talents of skilled labour and retaining them in the country’s labor market with a view to reaching a competitive knowledge-based economy.

The UAE DGov indicated that the UIS aims to compensate the insured worker with a cash amount for three months in the event that he is unemployed due to the end of his service with his employer in exchange for a subscription amount that is collected from the worker monthly during his work period.

The compensation will be given on a monthly basis at 60 per cent of the subscription salary (basic salary) for a period of three months from the date of unemployment, which is the maximum period for compensation for each claim, the UAE DGov added.

The UIS is applicable to all workers in the private and federal government sectors in the country, with the exception of five categories: Investors (Owners of companies they work at), domestic helpers, temporary contract workers, juveniles under the age of 18 and Retirees entitled to pension and joined a new job.