Legislation Details
- Full Title: Federal Decree by Law on Concerning Insurance Against Unemployment
- Law Type: Federal Decree-Law
- Law Number: (13) of 2022
- Issued Date: 15 Sep 2022
- Effective Date: 29 Sep 2022
- Official Gazette: No. 736
- Sector: Labour, Residency and Professions
- Status: Active
- Number of Articles: 16
- Chapters/Parts: 0
- Amendments: 0
Summary
This Federal Decree-Law establishes an unemployment insurance scheme in the United Arab Emirates. The scheme aims to provide temporary financial compensation to private sector and federal government employees who lose their jobs, in order to support them until they find new employment. The law sets out the eligibility criteria, compensation amounts and duration, as well as the roles and responsibilities of the Ministry of Human Resources and Emiratization and the Central Bank in implementing and overseeing the scheme. This legislation is intended to enhance the competitiveness of Emirati human resources in the labor market and attract global talent to the UAE. (Federal Decree by Law on Concerning Insurance Against Unemployment, 2022, Art. 1-2)
What is the scope and purpose of this law?
The Federal Decree-Law applies to all workers in the private sector and federal government sector in the UAE, with exceptions for certain categories such as investors, domestic workers, temporary contract workers, and retirees. The Cabinet may amend the scope of application based on a proposal from the Minister of Human Resources and Emiratization. The law aims to: (1) provide temporary financial compensation to insured workers during periods of unemployment; (2) enhance the competitiveness of Emirati human resources in the labor market; and (3) attract and retain global skilled talent in the UAE's labor market. (Federal Decree by Law on Concerning Insurance Against Unemployment, 2022, Art. 2-3)
What are the key definitions under this law?
The law provides the following key definitions:
- State: The United Arab Emirates
- Ministry: The Ministry of Human Resources and Emiratization
- Minister: The Minister of Human Resources and Emiratization
- Central Bank: The Central Bank of the UAE
- Scheme (Insurance against Unemployment Scheme): A scheme that aims to compensate insured workers with a cash amount for a limited period in the event of unemployment
- Insured: A worker/employee in the private sector or federal government sector who is subscribed to the unemployment insurance scheme
- Worker/Employee: Every natural person working in the private sector or federal government sector
- Unemployment Insurance: Unemployment resulting from termination of the insured's employment
- Compensation: The amount the insured is entitled to in the event of unemployment
- Private Sector: Companies, institutions, and establishments owned by individuals or the government
- Federal Government Sector: Ministries, federal authorities, institutions, and regulatory bodies
- Service Provider: Insurance companies licensed by the Central Bank to provide unemployment insurance services
(Federal Decree by Law on Concerning Insurance Against Unemployment, 2022, Art. 1)
What are the main obligations and requirements?
The key obligations and requirements under this law include: 1. Workers in the private sector and federal government sector must subscribe to the unemployment insurance scheme, with certain exceptions. (Federal Decree by Law on Concerning Insurance Against Unemployment, 2022, Art. 3) 2. The Cabinet must issue resolutions necessary to implement the provisions of the law. (Federal Decree by Law on Concerning Insurance Against Unemployment, 2022, Art. 7) 3. The insured must meet certain conditions to be eligible for compensation, including a minimum 12-month subscription period and not being dismissed for disciplinary reasons. (Federal Decree by Law on Concerning Insurance Against Unemployment, 2022, Art. 5) 4. The compensation paid to the insured must be 60% of their subscription salary, up to a maximum of AED 20,000 per month for 3 months. (Federal Decree by Law on Concerning Insurance Against Unemployment, 2022, Art. 6)
What licensing, registration, or approval requirements exist?
The law does not specify any licensing, registration, or approval requirements for individuals or companies. It states that the Cabinet will issue resolutions to determine the mechanism, operation, and application of the unemployment insurance scheme, as well as set any necessary conditions, procedures, or penalties for implementation. (Federal Decree by Law on Concerning Insurance Against Unemployment, 2022, Art. 4)
What rights and protections does this law provide?
The key right provided by this law is the entitlement of insured workers to receive temporary financial compensation in the event of unemployment, subject to meeting the eligibility criteria. The law aims to provide a social protection umbrella for workers and their families during periods of unemployment. (Federal Decree by Law on Concerning Insurance Against Unemployment, 2022, Art. 2)
Which authorities or bodies are responsible for enforcement?
The key authorities and bodies responsible under this law are: 1. The Ministry of Human Resources and Emiratization, which is responsible for proposing amendments to the scope of application and conditions for compensation, as well as making proposals to the Cabinet. (Federal Decree by Law on Concerning Insurance Against Unemployment, 2022, Art. 3, 5) 2. The Cabinet, which is responsible for issuing resolutions to implement the law, determine the scheme's mechanism and operation, set subscription fees, and amend compensation rates and periods. (Federal Decree by Law on Concerning Insurance Against Unemployment, 2022, Art. 4, 6, 7) 3. The Central Bank, which is responsible for licensing insurance companies to provide unemployment insurance services. (Federal Decree by Law on Concerning Insurance Against Unemployment, 2022, Art. 1)
What are the penalties for non-compliance?
The law does not specify any penalties for non-compliance. It states that the Cabinet will issue resolutions necessary to implement the provisions of the law, which may include imposing penalties. (Federal Decree by Law on Concerning Insurance Against Unemployment, 2022, Art. 7)
What fees, charges, or financial provisions are specified?
The law specifies the following financial provisions: 1. The compensation paid to the insured shall be 60% of their subscription salary, up to a maximum of AED 20,000 per month. (Federal Decree by Law on Concerning Insurance Against Unemployment, 2022, Art. 6) 2. The maximum period for compensation is 3 months per claim, with a total coverage period not exceeding 12 months during the insured's employment. (Federal Decree by Law on Concerning Insurance Against Unemployment, 2022, Art. 6) 3. The Cabinet may amend the compensation rates, values, and periods based on a proposal from the Minister and after coordination with the relevant authorities. (Federal Decree by Law on Concerning Insurance Against Unemployment, 2022, Art. 6)
What exemptions or exceptions apply?
The law exempts the following categories of workers from the unemployment insurance scheme: 1. Investors (owners of the facility in which they work) 2. Domestic workers 3. Workers with temporary contracts 4. Juveniles under 18 years of age 5. Retirees who receive a pension and have joined a new employment The Cabinet may amend the scope of application based on a proposal from the Minister. (Federal Decree by Law on Concerning Insurance Against Unemployment, 2022, Art. 3)
How are disputes resolved under this law?
The law does not specify any dispute resolution mechanisms. It states that the Cabinet will issue resolutions necessary to implement the provisions of the law, which may include procedures for resolving disputes. (Federal Decree by Law on Concerning Insurance Against Unemployment, 2022, Art. 7)
What are the key deadlines and time limits?
The key deadlines and time limits specified in the law are: 1. The insured must have a minimum subscription period of 12 consecutive months to be eligible for compensation. (Federal Decree by Law on Concerning Insurance Against Unemployment, 2022, Art. 5) 2. The maximum period for compensation is 3 months per claim, with a total coverage period not exceeding 12 months during the insured's employment. (Federal Decree by Law on Concerning Insurance Against Unemployment, 2022, Art. 6) 3. The law came into effect on the day following its publication in the Official Gazette, which was 29 September 2022. (Federal Decree by Law on Concerning Insurance Against Unemployment, 2022, Art. 8)
How does this law interact with other UAE legislation?
The law references the following related UAE legislation: 1. Federal Law No. (1) of 1972 on the Competences of Ministries and Capacities of Ministers 2. Federal Law No. (2) of 2001 on Social Security 3. Federal Decree-Law No. (14) of 2018 on the Central Bank and the Regulation of Financial Establishments and Activities 4. Federal Law No. (6) of 2007 on Regulating Insurance Activities 5. Federal Decree-Law No. (33) of 2021 on Regulating Labour Relations The law does not specify how it interacts with or amends these other pieces of legislation. (Federal Decree by Law on Concerning Insurance Against Unemployment, 2022, Preamble)
When did this law come into effect?
This Federal Decree-Law came into effect on 29 September 2022, the day following its publication in the Official Gazette No. 736. (Federal Decree by Law on Concerning Insurance Against Unemployment, 2022, Art. 8)
Source Documents
This article analyses Federal Decree by Law on Concerning Insurance Against Unemployment 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.