Dubai
Friday, May 27, 2022
  • Expo 2020
  • Things To Do
  • Auto
  • Property
  • Sports
  • Transport
  • Economy
  • Education
  • Government
  • Fashion
  • Tech
  • More
    • World
    • Crime
    • Weather
No Result
View All Result
Morning News
Home Government

UAE’s new unemployment insurance scheme will give employees vital protection, experts say

13/05/2022
Reading Time: 4 mins read
96
VIEWS
Share on FacebookShare on Twitter

Mandatory social support programme will help retain talent in the Emirates

ExpandAutoplay

RELATED POSTS

Global collaboration key to advancing scientific research, says Sarah Al Amiri

Who are the UAE’s new education ministers?

The UAE has introduced a new programme that means people who lose their job can receive a basic cash payment each month. All photos: Getty Images

.

The UAE’s new unemployment support programme will serve as a “security blanket” for residents and citizens, and is a progressive measure that gives employees crucial protection, experts say.

The mandatory programme, scheduled to be introduced in January 2023, is aimed at Emirati and foreign employees working in both the private and public sectors.

The new federal law was announced on Thursday by Dr Abdulrahman Al Awar, Minister of Human Resources and Emiratisation.

The law says that every employee will pay into an insurance company initiative, although officials have not yet said how the contributions will be made and whether they will, for example, be paid through their employer or taken out of their pay.

Employees will be able, however, to select from different insurance packages provided by different companies in the country.

Those who lose their jobs will receive 60 per cent of their basic salary each month — up to Dh20,000 — for a limited period of time to help with living costs.

If the unemployed person does not find employment within a certain period, financial support will end. The time period for this has not been made clear.

In the UAE, employees are paid a lump sum every month. But salaries are commonly broken down into “basic”, “housing” and “transport”, with the “basic wage” earned by an employee typically 50 to 65 per cent of the total amount received.

QuoteIt’s reassuring to know that the scheme will act as a security blanket in the future, providing vital protection to workersZahra Clark, head of Tiger Recruitment, Middle East and North Africa region

“The Emirates is demonstrating once again that it has an ambitious vision for the future of its citizens and residents,” Mohamed Seghir, chief executive of Hayah Insurance Company, told The National.

“By introducing such a scheme, the economic resilience of the community will be highly improved and employees will feel safer about their future and hence more productive, contributing in return to an improved labour ecosystem.”

Mr Seghir said his company planned to launch a workplace savings product called “employee secure saver” for workers in the UAE to help them prepare for future pension and end-of-service benefits.

Experts said the decision to introduce the unemployment insurance programme will draw and retain talent in the country across the private and public sector.

“It means that we become world class,” said Shahram Safai, partner Afridi and Angell legal consultants.

“With the impending introduction of unemployment benefits, the UAE moves towards the tier-one jurisdictions of this world in relation to labour laws and protection of employees.

“This is beneficial for employees for sure, but also for businesses because it enables businesses to recruit and attract the best employees by offering world-class protections.”

The new unemployment support programme will help people pay essential bills if they lose their job. Ruel Pableo / The National

Vital protection

The right to live in the UAE was previously predominately linked to employment or owning a business in the country, as is the case in many nations in the Gulf.

A series of recent policy decisions have changed that, however, with the introduction of new job-seeker and long-term visas so people do not have to leave the UAE immediately if they lose their positions.

Zahra Clark, head of Tiger Recruitment, Middle East and North Africa region, spoke of the buffer the new unemployment pay would offer families.

“It’s reassuring to know that the scheme will act as a security blanket in the future, providing vital protection to workers,” she said.

Read more Sheikh Mohammed bin Rashid announces new private sector Emiratisation drive

“During the pandemic, we have seen how people can lose their jobs without any warning and the devastating impact this can have on them and their families.

“Imagine suddenly finding yourself without an income when you have spiralling rent, bills and even school fees to pay.”

She said the key would be in the implementation of the plan.

“With the cost of living rising and people’s budgets shrinking, it will need to be affordable,” Ms Clark said.

The government said more specifics on the new system will be made available at a later date.

Updated: May 13, 2022, 6:38 AM

Source

ShareTweet

Related Posts

Global collaboration key to advancing scientific research, says Sarah Al Amiri

Global collaboration key to advancing scientific research, says Sarah Al Amiri

24/05/2022
96

New Minister of State for Public Education and Future Technology speaks at World Economic ForumSarah Al Amiri, Minister of State for Public Education and Future Technology, and chairwoman of the UAE Space...

Who are the UAE’s new education ministers?

Who are the UAE’s new education ministers?

23/05/2022
98

Sheikh Mohammed bin Rashid announces changes to help to ensure graduates are well prepared for the workplaces of the futureExpandAutoplayAhmed Belhoul Al Falasi speaks at a government meeting in Abu Dhabi. He...

A guide to benefits for Emiratis in private-sector jobs and fines for non-compliance

A guide to benefits for Emiratis in private-sector jobs and fines for non-compliance

21/05/2022
98

Support for Emiratis and levy on private companies to open up opportunities for UAE nationals ExpandAutoplayRashed Abdulla Al Sumaity, an associate at Galadari Advocates & Legal Consultants in Dubai. The legal and...

Sheikh Mohamed accepts further condolences from world leaders

Sheikh Mohamed accepts further condolences from world leaders

21/05/2022
96

Dignitaries paid tribute to Sheikh Khalifa and congratulated Sheikh Mohamed on his election as PresidentExpandAutoplaySaudi Arabia's Prince Turki Al Faisal and Angola's President Joao Manuel Lourenco offer condolences to the President, Sheikh...

UAE to send Dh35m of humanitarian aid to Somalia

UAE to send Dh35m of humanitarian aid to Somalia

20/05/2022
96

Aid agencies say worst famine in a decade could hit Somali people soonPresident Sheikh Mohamed has ordered that Dh35 million of humanitarian aid be sent to Somalia. Photo: Crown Prince Court –...

RECOMMENDED

Get bendy at this pretty new stretching studio in Downtown – What’s On

Get bendy at this pretty new stretching studio in Downtown – What’s On

27/05/2022
96
8 things to do in Abu Dhabi this June – What’s On

8 things to do in Abu Dhabi this June – What’s On

27/05/2022
96

22 unmissable things to do in the UAE in 2022 – What’s On

27/05/2022
96
Enjoy a roaring Great Gatsby-themed brunch 62 floors up

Enjoy a roaring Great Gatsby-themed brunch 62 floors up

27/05/2022
96

MOST VIEWED

  • Ronaldinho, Figo and Kaka among star names at Omega Pro Legends Cup in Dubai – in pictures

    Ronaldinho, Figo and Kaka among star names at Omega Pro Legends Cup in Dubai – in pictures

    0 shares
    Share 0 Tweet 0
  • Manchester City’s ‘legends’ celebrate Premier League title with open-top bus parade

    0 shares
    Share 0 Tweet 0
  • Water leak on The Palm Jumeirah causes chaos at rush hour

    0 shares
    Share 0 Tweet 0
  • Why US importers are willing to pay top dollar for long-term shipping contracts

    0 shares
    Share 0 Tweet 0
  • Dubai: Filipina found dead in a suitcase under Deira bridge

    0 shares
    Share 0 Tweet 0
  • TheKIEV.city
[email protected]
2022 © "TheDUBAI" Media Group.
All Rights Reserved
No Result
View All Result
  • Expo 2020
  • Things To Do
  • Auto
  • Property
  • Sports
  • Transport
  • Economy
  • Education
  • Government
  • Fashion
  • Tech
  • More
    • World
    • Crime
    • Weather

Copyright © 2022. "TheDUBAI" Media Group. All Rights Reserved