UAE's end-of-service benefits scheme: No new work permits, Dh1,000 fine if employers don't pay fee

Employers will be subject to penalties and fines for non-payment of subscription fees after they have joined the newly-launched alternative scheme for end-of-service benefits.

The scheme, which is optional for employers and employees, was launched by the UAE’s Ministry of Human Resources and Emiratisation (MoHRE) and the Securities and Commodities Authority (SCA) earlier this month, asking employers to register with the Ministry. The employers can choose employees, register them with the scheme and pay the monthly subscription fee.

Under the Cabinet Resolution No. (96) of 2023 Regarding an Alternative End-of-Service Benefits System, employers will pay a monthly subscription to an investment fund for the purpose of enabling beneficiaries to receive their entitlement upon completion of their employment from the basic subscription amount allocated to them.

However, if the employer fails to make the basic subscription payment by the due date, it will face certain penalties.

“If an employer fails to make a payment of the overdue subscription amount for a period of 2 months, the Ministry will cease issuing new work permits and may take other administrative actions in accordance with its applicable regulations,” it said.

Stay up to date with the latest news. Follow KT on WhatsApp Channels.

• UAE: Muslim astronauts need clarity on praying, fasting in space, expert says