Worker Insurance for Workers and Employee Job Loss

The UAE government introduces a new support plan for employees working in the United Arab Emirates. This is called a New Social Security or Insurance plan for the employees. The plan is introduced for government and the private sector employees to provide them financial assistance in case if there is a job loss, they lose the job or they become jobless. This is a type of financial support for compensating the employees which is commenced from the date.

This financial assistance is provided as the 60% of Basic Salary, on a monthly basis, and must not exceed AED 20000, for three months, which is from the date of unemployment. It is also (3 months) the maximum time or duration for the compensation.

The point to be noted is that there is no exemption for private and government sector employees. But the exemptions are also provided to a few employment or business categories like Businessmen, investors, domestic workers e.g. maids, housekeepers, short-term or temporary-term employees, retired workers on pensions, and juveniles. Further details can be grabbed by consulting our top Emirati Labour and Employment Lawyers and Legal Consultants.

The Distribution/way of payment is defined as follows;

Employees with a Basic Salary less than AED 16000, have to pay AED 5 every month and AED 60 in a year.

• Employees with a Basic Salary more than AED 16000, have to pay AED 10 every month and AED 120 in a year.
• ILOE is the application to register and pay the fee/amount.
• This insurance plan will not be valid or applicable If the employees are dismissed/terminated for some reasons, that can’t be accepted as fair reasons e.g. disciplinary reasons. These reasons are defined by UAE Labour Law for private employees and HR Law for government employees.
• This insurance plan will not be valid or applicable if, an employee commits fraud or such activity.
• Employee works for a fake company.
• Employee’s contribution should not be less than a year (consecutive time period).
• It has been made compulsory like Emiratization. The Non-Payment will cause a fine.
• All the employees except a few exempted categories (See Above) are held accountable.
• MOHRE is for grabbing details or Emirati Lawyers like Ask The Law Al Shaiba Advocates can also be hired.
• Book your Legal Appointment today with us.