In a recent development, the Ministry of Human Resources and Emiratization in the United Arab Emirates (UAE) has issued a firm warning directed at employees who have failed to enroll in the job loss insurance scheme within the specified timeframe.
The UAE, recognized for its stringent visa regulations, has emphasized that individuals missing the registration deadline may encounter hurdles during the visa renewal process.
Financial Penalties
The Ministry has implemented administrative measures, including the imposition of financial penalties that will be deducted directly from the salaries or end-of-service benefits of non-compliant employees.
As per the announcement, individuals who neglect to register by the specified deadline will face a fine of 400 AED. Moreover, an additional penalty of 200 Dirhams will be levied for late payment of insurance premiums within 90 days.
Visa Renewal Implications
Underscoring the seriousness of non-compliance, the Emirate has stated that failure to settle outstanding dues will lead to the denial of new work permits for affected individuals.
Significant Uptake of Social Security Scheme
Since its launch in January of this year, the social security scheme has gained considerable traction, boasting more than 6.6 million registrations. The scheme, designed to serve as a crucial safety net for both public and private sector workers in the event of job loss, has played a pivotal role in safeguarding the financial well-being of employees.
Exemptions and Registration Procedure
It is important to note that the social program is not mandatory for those working in free zones. However, individuals newly arrived in the UAE for employment purposes have a 120-day window to enroll in the unemployment insurance scheme.
The Ministry attributes the success of the scheme to the high level of awareness among the insured population and the substantial number of subscribers.
How to Apply for Employment Scheme?
For those yet to register, the Ministry outlines a straightforward process. Employees can visit the Involuntary Loss of Employment Insurance Pool portal at www.iloe.ae to complete their enrollment.
Read more: UAE Announces New Housing Policy.
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