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Employees in the UAE should no longer worry about losing their jobs!

2/11/2022

On 2 November 2022, the Ministry of Human Resources and Emiratisation (MoHRE) signed an agreement with a group of nine local insurance companies, to launch the framework of the new Unemployment Insurance Scheme, in line with the Federal Decree Law No. 13 of 2022 and the relevant Cabinet Resolutions.

The new insurance scheme aims to provide protection for employees in the private sector and the UAE’s federal government by providing them with cash compensation for a limited period not exceeding three months for each claim in the event of job termination for reasons beyond their control.

It also creates a safety net that supports employees in their career path and ensures their livelihood by relying on mechanisms that do not incur additional costs for employers, and it is paid by the employees and thereby provides a balance in the job market. Such scheme is applicable as of 2023.

As mentioned by Dr. Abdulrahman Al Awar, Minister of Human Resources and Emiratization “The new unemployment insurance law is an essential part of the legislative and legal structure that the government is keen to develop to meet the requirements of the national economy. This supports the UAE’s endeavors to be the next capital of the future, and a global incubator for talent and companies and investments, which can be achieved through economic and social development and the empowerment of human capital.

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