Abu Dhabi – The UAE Ministry of Human Resources and Emiratisation (MoHRE) has outlined four key conditions for employees to qualify for Unemployment Insurance Compensation in case of job loss. The system is designed to provide a financial safety net, ensuring stability for employees and their families during periods of unemployment.
Eligibility Criteria for Compensation
To qualify for unemployment compensation, employees must meet the following conditions:
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Minimum Subscription Period – The employee must have subscribed to the unemployment insurance system for at least 12 consecutive months.
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Non-Disciplinary Job Loss – The job loss must not be due to disciplinary action under the Labour Relations Law, Federal Human Resources Law, or any other applicable legislation.
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Genuine Employment History – The claim must not be fraudulent or related to fictitious employment.
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Active Job Search – Compensation payments will be suspended if the beneficiary secures new employment during the compensation period.
Who is Covered?
The decree applies to all employees in the private and federal government sectors, including UAE nationals and residents. However, certain categories are exempt from the scheme, including:
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Business owners working in their own establishments
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Domestic workers
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Employees on temporary contracts
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Individuals under the age of 18
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Retirees receiving pensions who have returned to work
Compensation Structure
The compensation amount is set at 60% of the insured salary (basic salary), with a maximum payout of Dh20,000 per month for up to three months from the date of unemployment. The total coverage period is capped at 12 months over an employee's entire career in the UAE job market.
Enrollment and Payouts
By the end of 2024, approximately 83% of the targeted workforce in the private sector had subscribed to the Unemployment Insurance System, with total compensation payouts exceeding Dh114 million for the year. Employees also have the option to negotiate additional benefits with licensed insurance providers regulated by the UAE Central Bank.
Disqualification from Compensation
An insured employee will lose eligibility for compensation if:
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They were dismissed due to disciplinary reasons under UAE labor laws.
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Their claim is fraudulent or involves false information.
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Their former employer is found to be a fictitious establishment.
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They secure a new job during the compensation period.
The UAE's Unemployment Insurance System reinforces the country’s commitment to social protection, offering financial stability to workers while promoting a sustainable and secure labor market.
