What is meant by the employment insurance system? What are the excluded groups? - FHS Law Firm

    You are currently here!
  • Home
  • Law What is meant by the employment insurance system? What are the excluded groups?

What is meant by the employment insurance system? What are the excluded groups?

The unemployment insurance system is an insurance system through which the worker pays, according to his salary, insurance fees that are considered simple and continue to be paid regularly. according to his salary We will publish its details in the following lines.

First: When was the Unemployment Insurance Law issued?

At the end of 2022, His Highness Sheikh Mohammed bin Zayed Al Nahyan, President of the State, issued Federal Decree Law No. 13 of 2022 regarding insurance against unemployment. This law provides for providing income for a maximum of three years, at a rate equivalent to sixty percent of the salary. The cut employee who was paid for his work, in the event of his dismissal from work. Compensation does not include cases of resignation and disciplinary dismissals.

What are the goals that the UAE aspires to achieve through the unemployment insurance system?

.The employee should not remain without an income to help him until he finds another job.

.Ensuring the competitive spirit in the UAE labour market.

.Ensuring a free and decent life for the employee who has been laid off from his job, as well as for his family while he is searching for a new job after being laid off.

This law is a strong incentive for manpower and distinguished talents to come to the UAE and enter the labour market with its challenges and competitiveness.

What does the law stipulate?

The worker participating in the insurance system for unemployment is entitled to receive a rate of sixty percent, calculated according to his basic wage, in the last six months of work, preceding his unemployment.

The second category: the unemployed person is entitled to compensation of twenty thousand dirhams as a single claim for a maximum of three months.

Unemployment insurance covers all workers in the private and government sectors in the United Arab Emirates

The following categories are excluded from it:

.The investor, i.e. the owner of the establishment who works in his own facility .Auxiliary employment

.Everyone under the age of eighteen years. (Juveniles)

.Retirees who receive a retirement pension. And they joined a new job,

.Workers on a temporary contract


The value of subscription to the unemployment insurance system

The value of participation in the unemployment system is calculated according to the basic salary of the worker as follows:

.The worker pays five dirhams per month, which is equivalent to sixty dirhams annually, as an insurance premium if he earns sixteen thousand dirhams as a basic salary. or less than 16 thousand dirhams.

.The worker pays ten dirhams per month as an insurance premium. That is equivalent to one hundred and twenty dirhams annually . His basic salary exceeded sixteen thousand dirhams

.The employee can pay the premiums monthly, or annually, semi-annually, or quarterly.

.The insured may subscribe to additional benefits. On the basic package, in

agreement with the insurance service provider, the value of the policy is subject to value added tax.

Q.How is the unemployment benefit paid?

Unemployment benefit shall be paid for a maximum period of nine months. When the unemployed person wants to return the claim more than once within a period of twelve months, he shall obtain the benefit again for a maximum period of nine months.

Q.Are there categories exempted from the unemployment insurance system?

Yes, as domestic helpers are exempted from unemployment insurance, just as free zone employees are exempted from unemployment insurance. All business owners who work in their own establishments are exempted from the insurance system.

Temporary workers and the category of youth under the age of eighteen are also exempted from the unemployment system. Retirees who are entitled to a pension after joining a new job.


Q.Are there conditions for obtaining the amount of compensation About unemployment?

Yes, there are conditions for the insured worker to be eligible for compensation:

Pay the insurance premium monthly, annually, or otherwise midterm. That the insured employee against unemployment has completed a full year (12) consecutive months, and the period shall be calculated from the date of subscription to the unemployment insurance scheme.

Q.Are there cases where the insured employee is denied unemployment compensation?

Yes, the insured loses eligibility for compensation in the following cases:

.The employee loses his right to unemployment compensation. If he was dismissed from work for disciplinary reasons, as stipulated in the law regulating labour relations in the private sector, the human resources law in the federal government, and any relevant applicable legislation.

.He loses his right to compensation if it is proved that he is trying. Obtaining it through deception and cheating is that

.It works in a real facility and not a fictitious one.

.If he joins a new job during his entitlement period.

Compensation for unemployment


For inquiries and more questions, do not hesitate to contact us.

Get advice from the FHS team For legal advice you will find the best Legal advisors are ready to assist you and provide you with valuable legal information, and the most credible, effective and sincere legal representation at work.

leave a comment