The UAE's end-of-service benefits scheme is now in place, and companies have the option to register for it through the Ministry of Human Resources and Emiratisation (MOHRE) or the Securities and Commodities Authority (SCA). Participation in this scheme is voluntary for both employees and employers, and it's available to workers in the public and private sectors, as well as those in free zones. If employers choose to join the program, they can select the employees they wish to include in it.
UAE citizens working in public and private sectors or wanting to invest can also avail of the scheme. Employers looking to enrol in the scheme can make a request to the Ministry using their service channels. They can then pick from the approved investment funds and pay the subscription fees for the employees they want to include. On the other hand, the regulatory authorities of financial-free zones in the UAE will be responsible for creating and enforcing the necessary laws, rules, and regulations for the scheme as it pertains to employees in those zones.
Employees will have the option to either receive monetary benefits when their employment contract ends or keep investing in the end-of-service scheme until it reaches maturity. If an employee changes jobs, the new employer can take over the scheme from the previous one and continue making contributions to the same fund after making an agreement with it.
Types Of Subscription And Deduction
You have a choice between two subscription types. The basic one is for non-skilled workers, and it places contributions into low-risk investment funds. On the other hand, there's a voluntary subscription for skilled workers who are well-versed in investments. They can decide to allocate their funds to investments with higher to medium levels of risk. However, if skilled workers don't make a specific choice, their funds are automatically directed to low-risk guaranteed investments.
Withdrawal
As for withdrawals, employers can exit the scheme with MOHRE's approval, given they fulfil specific criteria. These criteria include having a minimum subscription period of one year, having no pending administrative fines or unresolved labour disputes, and implementing measures to ensure that the withdrawal won't affect the rights and entitlements of employees, among other requirements.
To register for the scheme, the employer needs to submit a request to the Ministry of Human Resources and follow all the steps.