The “Unemployment Insurance” system for workers and employees of the federal and private government sectors entered into force at the beginning of this year.
Insurance companies will start disbursing the first unemployment compensation payments, to eligible workers, as of January 2024, after 12 consecutive months have passed from the insured’s participation in the insurance system.
The main conditions for the entitlement of the insured to the payment of compensation, the most important of which are:
First: No interruption in the subscription for a period of more than three consecutive months.
Second: The insured proves that he is unemployed for a reason other than his resignation.
Third: As the insurance certificate is considered canceled if the worker fails to pay contributions for 90 days, while all paid premiums are “non-refundable.”
Fourth: The insured worker should not have an existing complaint about his absence from work.
Fifth: The subscription period shall not be less than 12 consecutive months in the unemployment insurance system
Sixth: The claim for compensation should not be by fraud or deception, or if it was found that the establishment in which he works is fictitious.
Seventh: The loss of work should not be the result of strikes or non-peaceful work stoppages, whether or not damage resulted from them.
Eighth: The insured must be legally present in the country.
Ninth: The loss of work should not be based on the state's declaration of an emergency.
Tenth: Submitting the claim within 30 days from the date of termination of the work relationship or the decision on the labor complaint referred to the judiciary.
In detail, the Dubai Insurance Company, representing the seven insurance pool companies contracting with the Ministry of Human Resources and Emiratisation, will start, as of today, receiving applications for compulsory participation in the unemployment insurance system from workers in all federal and private government sectors (citizens and residents), which It provides financial compensation to the insured for a period of three months, in the event that he leaves work for involuntary or non-disciplinary reasons, equivalent to 60% of the value of the salary he was receiving at his employer.
The insured is entitled to the insurance coverage stipulated in this policy after 12 months have passed from the date of subscription (which is available from today), provided that there is no interruption in the subscription for more than three months, which means that unemployment compensation can start to be paid to the beneficiaries, starting from January 2024, pointing out that there are two cases for the insurer’s obligation to provide insurance coverage to end. The first is reaching the maximum total insurance coverage during the period of the insurance certificate throughout the entire career of the insured in the country, and the second is the death of the insured.