New year in UAE: 3 new laws, initiatives that take effect this year

The UAE broke multiple world records as it ushered in 2023. And the new year is all set to be yet another momentous one for the country. Several initiatives have already gone into effect as 2023 dawned in the country. From boosting employees' wellbeing to a ban on plastics in an emirate, here's how the year is already looking up.

Unemployment insurance scheme

Emiratis and expats employed in the private sector and federal government departments will get a form of social security if they suddenly lose their jobs. The unemployment insurance scheme will offer financial support of up to three months if an employee is terminated.

The subscription to the unemployment insurance scheme will start on January 1, 2023, and the ministry has also called on UAE nationals and residents working in the federal government and private sector to subscribe to the scheme.

The subscription fees depend on the employee’s basic salary. Those with a basic salary of Dh16,000 or less have to pay a subscription fee of Dh5 per month (Dh60 annually) and are eligible for monthly cash compensation up to Dh10,000.

The second category of people, whose basic salary is higher than Dh16,000, must pay Dh10 per month (Dh120 annually) and is entitled to maximum monthly cash compensation of Dh20,000.

The insurance fees can be paid monthly, quarterly, once every six months, or annually. The insurance compensation is calculated at 60 percent of the employee’s basic salary in the last six months before unemployment.

Emiratisation rule

Companies with more than 50 employees must achieve an Emiratisation rate of 2 per cent for skilled jobs to avoid penalties, and non-compliant companies will face financial penalties, which will be collected starting from January 2023.

A monthly fine of Dh 6,000 will be imposed for every UAE national that has not been appointed, and the penalty should be paid in a single installment.

However, if an Emirati resigns from a private company, the firm must get an Emirati replacement to meet the Emiratisation target. Companies that successfully achieve the targets will receive significant incentives, including discounts of up to 80 per cent on MoHRE fees.

Ban on single-use plastics in UAQ and Ajman

• UAE: Another emirate to ban single-use plastic bags