UNITED ARAB EMIRATES: Before the registration deadline for the UAE’s job loss insurance system, people were waiting for outside money exchange houses, including Al Ansari Exchange House in Sharjah’s Rolla neighbourhood. Employees can sign up for the insurance program at various venues, including the Al Ansari Exchange.
Long lines at the Al Ansari Exchange in Al Nahda have caused some employees to struggle with the Involuntary Loss of Employment Insurance registration process.
The long lines have caused some employees to be unable to finish the process. A cleaner from Sharjah, Bilal Ahmed, reported waiting for about an hour in line to register.
Bilal encouraged his friends and coworkers to sign up for the insurance program, which offers low-cost financial support for job loss. Non-registered employees will face a Dh400 fee by October 1, and the program offers a set length of time for support.
Locals claim they were not informed of the deadline for insurance, but authorities have emphasized that it is the employees’ responsibility to obtain insurance. A Pakistani expatriate worker, Khalil, claimed he was only made aware of the deadline on September 30.
He and his coworker decided to register online after work but found the exchanges in Sharjah to be packed and waited in a queue for 45 minutes before arriving at the Sharjah City Centre.
Employees who fail to enroll in a program by the deadline face penalties of Dh400, Dh200, or Dh20,000. Non-participants who fail to pay premiums for more than three months after subscribing will face Dh200 in punishment.
Those found using another person’s insurance benefits will face a Dh20,000 fine. Unpaid fines will be borne by the employee, not the employer. The Ministry of Human Resources states that unpaid fines must be refunded.
Employees with outstanding insurance penalties cannot apply for a new work permit until they pay all the fines. However, certain exceptions apply, such as investors, business owners, domestic workers, temporary workers, minors under 18, and retirees who receive a pension and start working for a new employer.
The unemployment insurance programme has two eligibility groups: those with salaries under Dh16,000 pay a monthly premium of Dh5, and those receiving up to Dh10,000. An employee’s insurance premium is fixed at Dh10 per month for salaries greater than Dh16,000, and their remuneration is limited to Dh20,000.
Insurance payments are calculated at 60% of the average basic wage in the six months before unemployment and can only be obtained by workers who have paid for at least 12 consecutive months. Employees cannot be dismissed or resigned.
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