UAE jobs: Sheikh Mohammed announces unemployment insurance for workers

A new insurance scheme announced in the UAE will protect employees against job loss.

Taking to Twitter after chairing a UAE Cabinet meeting on Monday, the UAE Vice-President said the unemployment insurance scheme will offer a cash amount for a limited period of time to the insured person who suddenly loses his/her job.

The system will be implemented through insurance packages. An insured employee will be compensated for a certain period of time till he or she finds another job.

“The aim is to enhance the competitiveness of the labour market in the UAE, protect employees and establish a stable work environment,” tweeted His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice-President and Prime Minister of the UAE and Ruler of Dubai.

The law aims to enhance the competitiveness of Emiratis in the job market, as well as “attract the best international talent to the UAE”.

Sheikh Mohammed or his office did not announce further details about the scheme.

According to the International Labour Organization, unemployment insurance schemes are implemented in both emerging and advanced economies to protect employed individuals against the risk of job loss.

The UAE’s move is the latest in a string of reforms announced in recent months to attract and retain global talents. A five-year Green Visa announced recently to attract skilled professionals, freelancers, investors and entrepreneurs offers longer flexible grace periods that reach up to six months to stay in the country after the residence permit is cancelled or expired.