As of September 29th, employees of the public and private sectors will be able to benefit from Unemployment Insurance, pursuant to the new law on Unemployment Insurance (Federal Decree by Law No. 13 of 2022) which was published in the Federal Gazette. The main objective of this new Law is to provide an income for unemployed employees, for a limited period, until alternative job opportunities become available. The provisions of the new Law are applicable to all employees except: Investors, domestic workers, workers under temporary employment, juveniles, and retirees.
As a consequence, a new unemployment insurance scheme will be established to determine the compensation.
 
What are the insurance eligibility conditions and value of compensation?

• The unemployed should be subscribed in the scheme for at least ( 12 ) consecutive months.
• The unemployed should not be dismissed from work for a disciplinary reason.
• The unemployed shall not use fraudulent methods to claim compensation.
• The value of the compensation is set at 60% of the subscription salary, but capped at AED /20,000/.
• The compensation will be disbursed for 3 months.

 
Finally, the Cabinet is expected to issue a resolution to determine the scheme’s mechanisms, operation and application.