The Unemployment Insurance Scheme for the public and private sectors has come into effect.
Announced by the Ministry of Human Resources and Emiratisation (MoHRE), the scheme provides individuals that have lost their job with a cash amount for a specific period, till a new job is found.
The compensation will be given monthly and will be calculated at 60% of the employee's salary for around three months from the date of unemployment, with a cap of Dhs 20,000 every month.
The new scheme applies to all employees apart from investors, domestic helpers, part-time employees, juveniles under the age of 18 and retirees who receive a retirement pension and have a new job.
To receive the compensation, the employee should be insured for around 12 continuous months, from the date of subscription to the insurance system as well as not have been dismissed for disciplinary reasons.
On finding new employment, the compensation will be stopped and fraudulent claims for the compensation will be penalised.
Dr Abdulrahman Al Awar, Minister of Human Resources and Emiratisation said, "The UAE prioritises preserving human dignity, and this decree enhances the legislative environment to safeguard the rights of all employees in the country – Emiratis and residents alike and provides them with the best means of care at all levels. This contributes to enhancing the stability and prosperity of society, which is among the top priorities of our wise leadership."