The Ministry of Human Resources (MoHRE) will start imposing fines on UAE workers who have not yet subscribed to the unemployment insurance scheme or who fail to pay their premiums on time.

The deadline for subscribing to the job loss insurance system ended in October 2023, yet 14% of employees remain unregistered, the MoHRE said in a statement.

Individuals who fail to enrol in the insurance programme will be asked to pay a fine of AED400 ($108), while those who don’t make regular payments are liable to pay a fine of AED200.

Non-compliant employees could also lose the opportunity to renew their employment permits, the ministry said.

“We urge workers to pay their due fines promptly in order to avoid administrative measures that will be taken against non-compliant individuals, including being denied new work permits,” the MoHRE said.

“The fine amount will then be deducted from the employee’s salary or end-of-service benefits.”

Compensation

The mandatory unemployment insurance scheme, which covers UAE nationals and residents working in the federal and private sectors, took effect in January this year.

Employees who subscribe to the scheme are eligible to receive up to a maximum of three months’ cash compensation in the event of unemployment, provided they meet the relevant criteria.

Workers who are liable to pay fines for non-compliance can settle the fees through the MoHRE’s smart application, official website or authorised business service centres.

Subscription to the scheme can be completed by visiting the Involuntary Loss of Employment (ILOE) Insurance Pool website, the ILOE smartphone application, physical self-service kiosks, ATMs, business service centres, exchange companies, banking applications, SMS text messages, telecom companies’ bills, or the ILOE call centre on 600599555.

(Writing by Cleofe Maceda; editing by Seban Scaria) seban.scaria@lseg.com