Starting a new job in the UAE? New employees have a four-month grace period to register for the mandatory unemployment insurance. This rule applies to all private sector and federal government workers. Those employed in free zones, semi-government, and local government bodies have the choice to join.
The policy was highlighted by legal adviser Mohammed Najeeb, referencing the ministerial resolution No. 604 of 2022. He noted that according to article No. 11, individuals employed post-January 1, 2023, should enroll in the scheme within four months. This period starts either upon entering the UAE, receiving their work permit, or after a status change. The grace period also extends to those who began employment post the October 1 registration deadline.
Should employees fail to register within the provided window, they risk incurring a Dh400 fine. It is the individual employee’s responsibility to register. However, the Ministry of Human Resources has made provisions for employers to register on behalf of their staff.
Mr. Najeeb emphasized the benefits of the scheme, stating it offers a safety net. It provides a three-month compensation, aiding individuals in maintaining a decent lifestyle while job hunting, particularly during financial struggles.
The Ministry revealed that over 6.5 million employees have already registered for the unemployment insurance system.
