Unemployment Insurance for Free-Zone Employees

#unemployment #insurance in the UAE is now available for #freezoneuae employees, as well.

By way of reminder, unemployment insurance in the UAE came into effect on January 1, 2023.

By virtue of the UAE Federal Decree Law №13 of 2022 re: the?Involuntary Loss of #employment (ILOE).

Under this law, a scheme was introduced for temporary assistance for #employees who lost their #jobs due to reasons other than 1) disciplinary action or 2) #resignation

Upon its entry into force, unemployment insurance was made #mandatory for employees, throughout the country.

With the exception of free-zone employees. Until now, that is.

As of May, 2023, the unemployment insurance scheme has been extended to the free zones across the UAE, except the #difc and #adgm

This means that, free zone employees can now, not only #subscribe for this unemployment scheme, but are required to do so.

Much the same way, as all other employees have had to since January 1, 2023.

At a high level, unemployment insurance provides employees #compensation coverage of 60% of their basic salary for up to 3 months. Capped at AED 20,000/month.

On the condition that monthly #premiums have been paid for at least 12 consecutive months.

Want more legal updates? Check out our latest?articles?to stay informed on all the law-related news and guidelines in the UAE — all with a click of a button.