Legislation Details
- Full Title: Cabinet Resolution Concerning Mechanisms and Controls for Implementing the Unemployment Insurance Scheme
- Law Type: Cabinet Resolution
- Law Number: No. (97) of 2022
- Issued Date: 14 Oct 2022
- Effective Date: 14 Oct 2022
- Official Gazette: No. 738
- Sector: Labour, Residency and Professions
- Status: Active
- Number of Articles: 37
- Chapters/Parts: 0
- Amendments: 0
Summary
This Cabinet Resolution establishes the mechanisms and controls for implementing the Unemployment Insurance Scheme in the UAE. The law aims to provide financial support to private and federal government employees who lose their jobs, with the goal of stabilizing the labor market and supporting the national economy. The Resolution sets out the eligibility criteria, compensation amounts, premium collection procedures, and governance framework for the scheme, which is a significant development in the UAE's social security system. (Cabinet Resolution Concerning Mechanisms and Controls for Implementing the Unemployment Insurance Scheme, 2022)
What is the scope and purpose of this law?
The Resolution applies to all workers and employees in the federal government and private sectors, with the exception of investors, domestic workers, temporary contract workers, juveniles under 18, and retirees who have joined a new job. The purpose is to establish the mechanisms and controls for implementing the Unemployment Insurance Scheme, which provides financial compensation to eligible insured persons who lose their jobs. (Cabinet Resolution Concerning Mechanisms and Controls for Implementing the Unemployment Insurance Scheme, 2022, Art. 2)
What are the key definitions under this law?
The Resolution defines the following key terms:
- Basic Insurance Package: The package that grants compensation to the insured at 60% of the contribution salary, without any additional benefits. (Cabinet Resolution Concerning Mechanisms and Controls for Implementing the Unemployment Insurance Scheme, 2022, Art. 1)
- Subscription Salary: The basic monthly wage of the worker or the monthly basic salary of the employee, based on which the insurance premium and the compensation sum are calculated. (Cabinet Resolution Concerning Mechanisms and Controls for Implementing the Unemployment Insurance Scheme, 2022, Art. 1)
What are the main obligations and requirements?
The key obligations under this Resolution include: 1. All workers and employees in the federal government and private sectors must subscribe to the Unemployment Insurance Scheme by purchasing an insurance policy. (Cabinet Resolution Concerning Mechanisms and Controls for Implementing the Unemployment Insurance Scheme, 2022, Art. 2) 2. The service provider must conclude an agreement with the Ministry of Human Resources and Emiratization that sets out its obligations, premium collection mechanisms, compensation procedures, and other requirements. (Cabinet Resolution Concerning Mechanisms and Controls for Implementing the Unemployment Insurance Scheme, 2022, Art. 5) 3. The insured must pay the insurance premiums according to the prescribed values and timeframes. (Cabinet Resolution Concerning Mechanisms and Controls for Implementing the Unemployment Insurance Scheme, 2022, Arts. 6-8)
What licensing, registration, or approval requirements exist?
To provide unemployment insurance services, the service provider must be: 1. An insurer licensed by the UAE Central Bank. 2. Have a minimum financial rating as specified in the Resolution. 3. Be financially solvent according to the Central Bank's requirements. 4. Have a governance structure that satisfies the Central Bank's requirements. 5. Provide proof of high-quality and efficient service, as well as the necessary systems and digital channels. The service provider must also obtain the Ministry's prior approval for the insurance packages offered. (Cabinet Resolution Concerning Mechanisms and Controls for Implementing the Unemployment Insurance Scheme, 2022, Arts. 3-4)
What rights and protections does this law provide?
The Resolution grants the following rights and protections to the insured: 1. The right to receive compensation at 60% of their subscription salary for up to 3 months, with a maximum of AED 10,000 or AED 20,000 depending on their salary category. (Cabinet Resolution Concerning Mechanisms and Controls for Implementing the Unemployment Insurance Scheme, 2022, Art. 10) 2. The right to subscribe to additional benefits beyond the basic insurance package. (Cabinet Resolution Concerning Mechanisms and Controls for Implementing the Unemployment Insurance Scheme, 2022, Art. 11) 3. The right to have their compensation claim processed and paid within 2 weeks if they meet the eligibility criteria. (Cabinet Resolution Concerning Mechanisms and Controls for Implementing the Unemployment Insurance Scheme, 2022, Art. 13)
Which authorities or bodies are responsible for enforcement?
The key authorities and bodies responsible for the governance and enforcement of the Unemployment Insurance Scheme are: 1. The Ministry of Human Resources and Emiratization, which is responsible for approving the insurance packages, monitoring the service provider's compliance, and periodically reviewing the scheme's implementation. 2. The UAE Central Bank, which is responsible for regulating and supervising the insurance service provider. 3. The Federal Authority for Government Human Resources, which is responsible for implementing the scheme for federal government employees. (Cabinet Resolution Concerning Mechanisms and Controls for Implementing the Unemployment Insurance Scheme, 2022, Arts. 14, 16)
What are the penalties for non-compliance?
The Resolution does not specify any penalties for non-compliance. It only states that the insured will not be able to benefit from the scheme if they fail to pay the insurance premiums for 3 months, and that they will have to pay a fine to re-subscribe. (Cabinet Resolution Concerning Mechanisms and Controls for Implementing the Unemployment Insurance Scheme, 2022, Art. 8)
What fees, charges, or financial provisions are specified?
The Resolution specifies the following financial provisions: 1. The insured must pay a monthly premium of up to AED 5 or AED 10, depending on their subscription salary category. (Cabinet Resolution Concerning Mechanisms and Controls for Implementing the Unemployment Insurance Scheme, 2022, Art. 7) 2. The insured must pay a fine of AED 400 for failing to subscribe to the scheme, or AED 200 for failing to pay the premiums for more than 3 months. (Cabinet Resolution Concerning Mechanisms and Controls for Implementing the Unemployment Insurance Scheme, 2022, Art. 8)
What exemptions or exceptions apply?
The following categories are exempt from the requirement to subscribe to the Unemployment Insurance Scheme: 1. Investors (the person owning and working at the establishment) 2. Domestic workers 3. Temporary contract workers 4. Juveniles under the age of 18 5. Citizens who have fulfilled the conditions for superannuation, or retirees who have joined a new job. (Cabinet Resolution Concerning Mechanisms and Controls for Implementing the Unemployment Insurance Scheme, 2022, Art. 2)
How are disputes resolved under this law?
The Resolution states that any disputes arising from the implementation of the Unemployment Insurance Scheme shall be subject to the exclusive jurisdiction of the courts of the United Arab Emirates and shall be governed by the laws and legislation in force in the UAE. (Cabinet Resolution Concerning Mechanisms and Controls for Implementing the Unemployment Insurance Scheme, 2022, Art. 15)
What are the key deadlines and time limits?
The key deadlines and time limits specified in the Resolution are: 1. The insured must submit their compensation claim within 30 days from the date of termination of employment. (Cabinet Resolution Concerning Mechanisms and Controls for Implementing the Unemployment Insurance Scheme, 2022, Art. 12) 2. The service provider must pay the compensation to the insured within 2 weeks of receiving the eligible claim. (Cabinet Resolution Concerning Mechanisms and Controls for Implementing the Unemployment Insurance Scheme, 2022, Art. 13) 3. The persons governed by the law must subscribe to the Unemployment Insurance Scheme within 4 months from the date of entry into force of the Resolution, which the Minister may extend as required. (Cabinet Resolution Concerning Mechanisms and Controls for Implementing the Unemployment Insurance Scheme, 2022, Art. 17)
How does this law interact with other UAE legislation?
The Resolution references and builds upon the following UAE laws and regulations: 1. Federal Decree-Law No. (13) of 2022 concerning Unemployment Insurance 2. Federal Decree-Law No. (33) of 2021 Regulating Labor Relations and its Executive Regulations 3. Federal Decree-Law No. (6) of 2007 concerning the Regulation of Insurance Activities, as amended 4. Federal Law No. (14) of 2018 regarding the Central Bank and Organization of Financial Institutions and Activities, as amended (Cabinet Resolution Concerning Mechanisms and Controls for Implementing the Unemployment Insurance Scheme, 2022, Preamble)
When did this law come into effect?
The Cabinet Resolution Concerning Mechanisms and Controls for Implementing the Unemployment Insurance Scheme came into effect on 14 October 2022, the date of its issuance. It was published in the Official Gazette No. 738 on 31 October 2022. (Cabinet Resolution Concerning Mechanisms and Controls for Implementing the Unemployment Insurance Scheme, 2022, Art. 18)
Source Documents
This article analyses Cabinet Resolution Concerning Mechanisms and Controls for Implementing the Unemployment Insurance Scheme for legal research and educational purposes. For the purpose of interpretation and application, reference must be made to the original Arabic text. In case of conflict, the Arabic text prevails. This does not constitute legal advice.