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Job Loss Insurance: Fines for failing to apply for insurance may be deducted from salaries

All employees of federal government ministries and private sector companies must join the UAE's unemployment insurance plan or face a fine that will be deducted from their salary. Subscriptions to the scheme began on January 1, 2023. Employees will be penalized Dh400 if they do not join a program by June 30, 2023. According to the Ministerial Resolution: Workers/employees who fail to pay their fines for three months from the due date will have the fine amount deducted from their wages through the Wage Protection System, end-of-service gratuity, or any other alternative method deemed acceptable by the Ministry (of Human Resources and Emiratisation). Another clause in the resolution specifies that the employee will not be eligible for a new work permit until all due fines are paid "within the designated term." The resolution states that if the insured fails to pay the insurance premiums for more than three months from the due date, the insurance certificate will be canceled, and a penalty of Dh200 will be imposed. Additionally, if an employer colludes with the insured to obtain unemployment insurance benefits, the ministry will impose an administrative fine of Dh20,000 for each case. Employees can pay their fines using the MOHRE website, app, or business service centers certified by the ministry. They can also apply for installment payments or a waiver using the same means. BKM/ Expat Media ALSO READ: All you need to know about UAE Unemployment Insurance
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