UAE: MOHRE urges claims for compensation in unemployment insurance programme

After completing a full year of participation in the unemployment insurance programme, workers and employees are urged by the Ministry of Human Resources and Emiratization to begin the claim process if they have lost their jobs due to non-disciplinary reasons or circumstances beyond their control.

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The call is being made in compliance with Federal Law No. 13 of 2022, which requires insurance system participants who have made payments for a continuous 12-month period to be eligible for compensation.

According to this legislation, qualified participants in the insurance system have the opportunity to obtain compensation. The highest amount is set at 10,000 dirhams for an employee categorised as "first category" if their basic salary is less than 16,000 dirhams. For a worker falling into the "second category" with a basic salary surpassing 16,000 dirhams, the maximum compensation is 20,000 dirhams.

Worker participation in the unemployment insurance system will begin on January 1, 2023, and will be enforced by the Federal Decree-Law on Unemployment Insurance and the Cabinet's decision. For qualified workers who lost their jobs after paying for their insurance for a full year in a row (January through December 2023), requests for reimbursement will be taken into consideration.

The Ministry clarified conditions for compensation eligibility, emphasising that the insured individual must not have been dismissed for disciplinary reasons and that the claim should not involve fraud or deception. Additionally, if the workplace is found to be fictitious, penalties under relevant labour laws will be applied.

To submit a claim for unemployment compensation, eligible subscribers should follow nine specified steps. These include entering the website of the "Insurance Complex," selecting "Submit a Claim," entering required data, requesting a verification code, and confirming details related to cancelling the work permit. Supporting documents may need to be attached, and information about the subscriber's bank or exchange company should be provided before submitting the claim.

For a predetermined amount of time, the unemployment insurance programme seeks to compensate eligible insured individuals for lost wages. For a three-month period starting on the date of unemployment, this compensation is equal to 60% of the subscription wage (basic salary). Through social protection, talent attraction from abroad, and increased competitiveness in the job market, the system helps Emirati cadres.

Participation in the unemployment insurance system and payment of insurance premiums can be done through various electronic and smart channels, including the website and smart application of the insurance complex, bank applications, self-service machines, kiosk devices, and others. Two subscription categories exist, with different monthly subscription fees and coverage limits based on basic salary levels. To be eligible for compensation, the insured must have a subscription period of at least 12 consecutive months.

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