The Ministry of Human Resources and Emiratisation (MoHRE) in the United Arab Emirates has established four primary conditions for employees to qualify for 'Unemployment Insurance Compensation' in the event of job loss.

This initiative, part of Federal Decree-Law No. 13 of 2022, aims to provide a social safety net for employees and their families during unemployment, ensuring a standard of living is maintained.

To qualify for the compensation, employees must meet the following stipulated conditions:

1. Employees must have a minimum of 12 consecutive months of subscription to the unemployment insurance system.

2. Job loss must not result from disciplinary measures as per the Labour Relations Law, the Federal Human Resources Law, or any relevant legislation.

3. Compensation claims must not involve fraud or be associated with fictitious employment.

4. Compensation payments will be suspended if the claimant secures new employment during the compensation period.

The decree applies to all employees across both the private and federal government sectors, encompassing UAE nationals and residents.

However, specific categories of workers are exempt from this policy, including:

- Business owners who are working in their own establishments.

- Domestic workers.

- Employees engaged under temporary contracts.

- Individuals under the age of 18.
- Retirees receiving pensions who have returned to the workforce.

Compensation is structured to provide 60% of the insured salary (basic salary) with a ceiling of Dh20,000 per month for a maximum duration of three months from the date of job loss.

The total coverage available is capped at 12 months throughout an individual’s employment span in the UAE.

The MoHRE has indicated that by the end of 2024, approximately 83% of the target workforce within the private sector is expected to enroll in the Unemployment Insurance System, with total compensation payouts surpassing Dh114 million during that year.

Unemployment Insurance serves as a financial safety net for insured employees who may be eligible to receive funds for up to three months in the event of job termination.

This is contingent upon the payment of a monthly subscription fee that is deducted from their salary while they are employed.

Compensation payments commence from the first day of unemployment, calculated at 60% of the insured salary (basic salary) for a maximum of three months per claim.

However, eligibility may be forfeited under certain conditions, including:

- Dismissal for disciplinary reasons under applicable labour laws.

- Fraudulent or deceptive claims for compensation.

- Involvement with a fictitious employing establishment.

- Acquisition of new employment during the compensation timeframe.