There is just one day left for employees to submit their applications for the UAE's job loss insurance programme before the registration deadline. The deadline for enrolling to the job safety system, which was stated as October 1st, must be met by employees. Those who neglect to do so run the danger of being fined and subject to additional sanctions.The programme provides a simple and affordable solution for employees to get temporary financial assistance in the event of job loss.Everything you need to know about the job loss insurance programme is provided here, from fines to exclusions.
Those qualified personnel who fail to enrol in the programme before the cutoff date would be subject to a Dh400 punishment. Employees who fail to pay their premiums for more than three months beyond the due date after subscribing will be subject to a Dh200 punishment. Employees who are discovered using another person's insurance benefits under the system would be subject to a stiff punishment of Dh20,000. Those who choose not to participate in the programme will be subject to fines and penalties, not the employers, it is crucial to keep in mind.
According to the Ministry of Human Resources, unpaid fines will be removed from either the employee's pay or end-of-service benefits. The insurance programme fines that employees owe will prevent them from applying for a new work permit until they have been paid in full. There are certain exceptions to the rules governing the programme. Investors, company owners, housewives, temporary workers, children under the age of 18, and retirees who get a pension and have joined a new job are some examples. Except for the aforementioned, all government and private personnel are required to register with the programme, and violators will be subject to penalties.
The two types of unemployment insurance are as follows:
The insurance cost for those making up to Dh16,000 per month or less is fixed at Dh5, with a maximum monthly wage of Dh10,000.
The insurance cost is set at Dh10 per month for employees making more than Dh16,000, while the monthly wage ceiling is Dh20,000.
It's vital to remember that the beneficiary must have paid into the programme for at least a year in order to be eligible for reimbursement. He or she will not be entitled to compensation if they decide to revoke their resident visa, depart the country, or accept a new position. The maximum period of payment for each claim is three months, and the compensation is computed at a rate of 60% of the average basic wage in the six months prior to unemployment. The individual in question cannot have quit or been fired due to disciplinary issues.
