UAE implements fines for workers not enrolled in unemployment insurance scheme

The Social Security program is aimed at providing financial security to employees who lose their jobs.

Penalties for Non-Compliance

Starting Sunday, workers in the UAE who have failed to enroll in the country’s unemployment insurance scheme will be subject to fines of Dh400 ($109). This move comes as part of the Ministry of Human Resources and Emiratisation’s efforts to ensure compliance with the program.

Registration Deadline Passes

The Ministry of Human Resources and Emiratisation had actively encouraged employees to register for the unemployment insurance scheme before the October 1st deadline to avoid facing the penalty.

Safety Net for UAE Residents

The unemployment insurance program, introduced in May of the previous year, serves as a financial safety net for both Emiratis and UAE residents. In the event of job termination, it provides a cash sum for up to three months to support individuals during the transition period.

Registration Responsibility

The responsibility for enrollment in the unemployment insurance scheme rests with each individual employee. However, it’s worth noting that the Ministry of Human Resources and Emiratisation had also provided an option for employers to register their staff within the system. This measure aims to ensure comprehensive coverage and support for all eligible workers in the UAE.

The introduction of these penalties underscores the government’s commitment to enhancing the welfare and financial security of its workforce, particularly during challenging economic times.