The United Arab Emirates (UAE) Ministry of Human Resources and Emiratisation has issued a stern warning to employees who have failed to register for the job loss insurance scheme within the stipulated timeframe.
The Gulf nation, known for its rigorous visa requirements, has declared that those who miss the registration deadline may encounter obstacles during the visa renewal process.
The Ministry announced that administrative measures are now in effect, including the imposition of financial penalties that will be deducted from salaries or end-of-service benefits of non-compliant employees.
Individuals who neglect to register by the specified deadline will face a fine of 400 AED, with an additional penalty of 200 Dirhams for late payment of insurance premiums within 90 days.
Visa renewal hurdles
Highlighting the gravity of non-compliance, the Emirate stated that failure to settle remaining unpaid dues will result in the denial of new work permits for affected individuals.
Since its launch in January of this year, the social security scheme has garnered significant traction, with more than 6.6 million people registering under the program.
Designed to provide a crucial safety net for both public and private sector workers in the event of job loss, the scheme has played a pivotal role in safeguarding the financial well-being of employees.
Exemptions and registration process
It is important to note that the social program is not mandatory for those working in free zones. However, individuals newly arrived in the UAE for employment purposes have a 120-day window to enroll in the unemployment insurance scheme.
The Ministry attributes the success of the scheme to the high level of awareness among the insured population and the substantial number of subscribers.
How to subscribe to employment scheme
For those who have not yet registered, the Ministry provides a straightforward process. Employees are required to visit the Involuntary Loss of Employment Insurance Pool portal at www.iloe.ae for sign-up.