Emirates staff exempt from UAE unemployment insurance scheme

June 12, 2023 at 5:29 PM

The UAE’s unemployment insurance scheme is not mandatory for Emirates airline employees, staff were told this week.

Dnata employees can also choose whether to sign up to the scheme.

In an email seen by The National, Emirates and Dnata staff were told on Friday that those with permanent contracts were not obliged to join to the scheme. However, they can opt in if they want to.

The social security programme, called the Involuntary Loss of Employment insurance scheme, came into effect on January 1, 2023 and applies to all Emirati and foreign employees in the public and private sectors.

It is now mandatory that employees working in free zones register for the unemployment insurance programme.

First announced in May last year, the scheme is a financial safety net that will pay Emiratis and residents a cash sum for three months if they lose their jobs.

To receive unemployment financial support, employees must register and pay an insurance premium based on their monthly salary.

The deadline for registration for the unemployment insurance programme is June 30, the Ministry of Human Resources and Emiratisation said.

Those who fail to subscribe to the job loss scheme by June 30 will face a Dh400 fine.

Emirates airline’s announcement comes almost a month after the company said its staff would enjoy a share of a Dh10.6 billion ($2.9 billion) bonus pot after the company recorded its highest annual profit yet.

More than 50,000 of the airline’s employees received 24 weeks of pay with their May salaries, documents seen by The National showed.

“For our outstanding performance in 2022-2023, you deserve every bit of the 24-week profit share,” the document read. (NewsWire)