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UAE issued a new Decree on unemployment insurance

UAE issued a new Decree on unemployment insurance

Last year, the government of UAE introduced a New Labour law, which brought sea changes in the labour law regime in the country. To ensure its effective execution and implementation, the government has now issued Federal Decree No. (13) of 2022 relating to unemployment insurance. The main objective of this Decree is to provide financial stability to the people who remain unemployed for a small period.

In this news article, we are going to discuss the key highlights of this new Decree with the help of our best lawyers of Dubai.

What does the new Decree offer?
In the opinion of our best lawyers of Dubai, the new Decree is introduced with a mandate to provide social protection and alternative job opportunities to the employees of the country. This Decree covers all classes of employees, which include-

  • Domestic workers
  • Part-time workers
  • Juvenile workers (below the age of eighteen years)
  • The retiree who is receiving retirement and joined a new job

Who is eligible as per the new Decree?
Our best employment lawyers of Dubai have pointed out that the following people are eligible under this scheme:

  • Employees had no criminal antecedents or disciplinary proceedings in the past;
  • The employee must be unemployed through this period;
  • The minimum period of subscription to this scheme is 12 months;
  • The claim of compensation must be free from misrepresentation or deception.

Compensation/benefits
Under this unemployment insurance scheme, the compensation shall be paid monthly at a rate of 60% of the employee’s salary. The maximum amount of salary that can be paid under this scheme is AED 20,000 per month. Further, it is pertinent to note that the insured employee is also allowed to receive other additional benefits along with this scheme.

Conclusion 
Undoubtedly, this new Decree is a positive step for the employment sector as it aims to provide much-needed financial stability to the vulnerable strata. Our best lawyers of UAE have highlighted that the Ministry of Human Resources is expected to issue detailed guidelines in this regard very soon. To get more info, you can contact one of our best lawyers of Dubai.

BSB legal is a specialized employment law firm of Dubai. Our best lawyers will assist you in drafting agreements, obtaining regulatory approvals, and doing other advisory work. To know more information, kindly contact one of our best lawyers in UAE. You can email us at info@bsb.legal or call +97150 8014003.

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