The policy will lapse after three months of unemployment benefits have been received. Employees must purchase a new policy if they find another job
Dubai: Subscribers must be in the country to claim the benefits of unemployment insurance schemes in the UAE. If the member employees lose their job, they will get 60 percent of their basic salary as compensation for up to three months.
You have to join the scheme which came into effect on January 1 before June 30. Otherwise, a fine of 400 dirhams will be charged. Failure to pay the insurance premium beyond three months from the due date will result in the cancellation of the insurance certificate and a fine of Dh200.
Anyone dismissed from employment (other than for disciplinary reasons or resignation) is entitled to severance pay. Compensation for three months will not be paid in lump sum. Instead it will be paid every month. Those whose basic salary is 16,000 dirhams or less will get compensation up to 10,000 dirhams per month. For those whose basic salary is above Dh16,000, the maximum compensation they can get is Dh20,000.
Those who have lost their jobs must file a claim within 30 days. The Ministry of Human Resources and Emiratisation has directed that the compensation should be paid within two weeks. Employees insured for at least 12 consecutive months from the date of subscription are eligible for compensation.
The policy will lapse after three months of unemployment benefits have been received. Employees must purchase a new policy if they find another job. If you lose your job and your visa is cancelled, you get a grace period of up to six months to leave the UAE depending on your job category.
Currently, only domestic workers and those working in free zones are eligible to join the scheme. Apart from them, all the employees of the private sector, natives and non-residents, must be members. Investors, temporary contract workers, persons below 18 years of age, pensioners eligible for pension and newly employed retirees cannot be members of the scheme.