Abu Dhabi: The United Arab Emirates (UAE) has announced a four-month grace period for new employees to sign up for the unemployment insurance scheme. It is mandatory for every employee in the private sector as well as the federal government to register for insurance, said authorities.
“Workers in free zones, semi-government, and local self-governing institutions will also be given opportunities to join the insurance scheme,” said Legal Advisor Mohammed Najib.
"Under Ministerial Resolution Number 604 of 2022, the four-month grace period is available for employees who started fresh work in the UAE to register with the unemployment insurance scheme. All those working in the UAE after January 1, 2023, have to register for the insurance within four months of their entry to the country,” Najib explained. The grace period is applicable to new employees who started working in the UAE after October 1, he added.
Under the rule, employees failing to register for the insurance even four months after they join work in the UAE will have to pay a fine of AED 400. Each employee has a responsibility to sign up for the insurance, the rule states. At the same time, officials at the Ministry of Human Resources said that employers have the option in their system to register their employees in the scheme.
The insurance facility enables workers who lose jobs to receive a compensatory allowance for three months. This money would help them lead a modest life during the financial crisis. “Over 6.5 million employees have already registered with the insurance scheme,” said an official at the ministry. Registrations could be done on the website www.iloe.ae.