UAE unemployment insurance: Subscribers must be in country to get benefits after job loss

An employee subscribed to the unemployment insurance scheme must be present in the UAE to claim its benefits in the event of job loss, a top official has told Khaleej Times. Under the scheme, employees will receive a cash benefit (60 per cent of the basic salary) for up to three months if they lose their jobs.

“As long as you have lost your job after 12 months of subscription to the scheme and you are staying in the country, whether as a visitor or (as per terms of the) employment contract, you will be entitled to … compensation paid on a monthly basis,” Abdellatif Abuqurah, CEO, Dubai Insurance Company, said in an exclusive interview.

“The three months’ amount is not all paid at once. The payment is made at the end of each month as long as the employee is still in the country and has not got another job,” he added.

Abuqurah was responding to a question about how employees can claim the benefits of the scheme. Depending on their job category, expats typically get a grace period of one to six months to exit the country if they lose their employment and their visas are cancelled.

Other conditions to claim benefits of the scheme include payment of all premiums on time, and the reason for unemployment should not be disciplinary-related.

When asked what happens when employees avail of benefits for three months, Abuqurah explained: “Like the rest of insurance policies, it lapses. And if the employee finds another job, then he or she has to buy a new policy from the insurance pool.”

The employee has to be subscribed for 12 months to claim benefits in the event of another job loss.

As per the law, the aggregate claim payment shall not exceed 12 monthly benefits regardless of the number of claims submitted during the entire work life of the insured.

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