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UAE Mandatory Job Loss Insurance: Compliance Deadline & Fines

The MoHRE has announced the start of fine collection processes for employees who have not enrolled in the insurance programme, which was started in January 2023.

As the deadline for mandatory job loss insurance enrollment concluded in October, the Ministry of Human Resources and Emiratisation (MoHRE) reports that approximately 14% of eligible employees in the UAE remain unenrolled.

Fines Initiated for Non-Compliance:

MoHRE has announced the commencement of fine collection procedures for employees who have not subscribed to the insurance scheme launched in January 2023.

Those failing to register face a Dh400 fine, while individuals who have subscribed but missed premium payments incur a Dh200 penalty.

Fines can be verified and settled via MoHRE’s digital platforms or by visiting authorized business service centers. Additionally, the ministry offers the option to request installment plans to alleviate the financial burden on workers.

Consequences of Non-Payment:

To avoid administrative repercussions, MoHRE strongly advises settling due fines promptly. Failure to comply may result in the denial of new work permits, potential deductions from salaries, or adjustments to end-of-service benefits.

Enrollment Figures and Benefits:

Despite the outstanding registrations, over 6.7 million workers have already enrolled in the unemployment insurance scheme. Enrolled employees are eligible for financial compensation for up to three months following job loss.

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