UAE: 4 reasons why you should subscribe to job loss insurance scheme as early as possible

Emirati and expat employees working in the federal government, free zones and private sector still have three months to go before the job loss insurance scheme comes into effect.

The Ministry of Human Resources and Emiratisation (MoHRE) has extended the deadline of June 30 and allowed employees to subscribe to the mandatory scheme till October 1, or face a Dh400 penalty.

As of June 26, the number of subscribers to the unemployment Insurance scheme surpassed five million through multiple channels such as the Involuntary Loss of Employment Scheme website and app, Al Ansari Exchange and business centres.

But there are still many more employees who have not yet subscribed to the job loss scheme and are looking to purchase the insurance plan at the eleventh hour.

Here are a few major reasons that the remaining employees who have MoHRE contracts must subscribe as early as possible to avoid being penalised.

Firstly, as they say, never leave things till tomorrow. And the earlier, the better. Those employees who plan to subscribe on the last or second last day should not take this risk as they could forget it at the eleventh hour, hence, facing a Dh400 penalty.

Secondly, another reason that employees should not leave it to the last day is that sometimes systems malfunction hence the earlier the better.

Thirdly, since this scheme is mandatory for employees – and not employers, therefore, workers will bear the brunt of delay and pay the penalty. Hence, it’s advised to purchase the plan as soon as possible.

• UAE: New deadline announced for unemployment insurance registration