A Look Into UAE’s Comprehensive Workforce System

The UAE, driven by its historic values and inclusive culture, continues to refine its comprehensive workforce system, emphasizing a balanced approach that addresses both employee rights and employer needs. This commitment solidifies the UAE’s global leadership in human resource management.

The Ministry of Human Resources and Emiratisation (MoHRE) has played a pivotal role in creating a world-class environment for workers, showcasing tangible results in talent attraction, productivity boost, and unleashed creativity. The “Workers Protection Programme” spearheaded by MoHRE has achieved remarkable success, covering 98.8% of workers in the private sector. Over the past five years, more than 24,000 workers have benefited from the program, addressing issues such as unpaid wages and end-of-service entitlements, with a total payout exceeding Dh202 million.

Another significant initiative is the “Unemployment Insurance Scheme,” aligned with Federal Decree-Law No. 13 of 2022. The scheme ensures income availability for insured individuals during unemployment until alternative job opportunities arise. With over 6.7 million subscribers, the scheme provides a social protection umbrella, supporting a decent life for workers and their families during unemployment. Qualified employees, not subject to disciplinary action or resignation, receive monthly cash benefits of up to 60% of the average salary for three months, provided they have subscribed for at least 12 months.

In parallel, MoHRE and the Securities and Commodities Authority introduced the “Savings Scheme” as an optional alternative system for end-of-service gratuity. This scheme allows companies to invest allocated gratuity amounts through approved investment funds, aiming to develop employees’ savings and benefit from investment returns. The “Savings Scheme” aligns with the government’s vision to enhance ease of doing business, increase economic impact, and support the economic system with lower costs for employers compared to the current gratuity system.

This strategic move, in line with Cabinet Decision No. 96 of 2023, contributes to the attractiveness of the labor market for both national and international talents, reinforcing the UAE’s status as a prominent destination for living and working. The innovative system aims to fulfill individual aspirations, protect workers’ financial entitlements, promote savings, generate investment returns, and reduce labor disputes over end-of-service gratuity.

As part of its efforts to raise workforce awareness, MoHRE initiated the “Tawjeeh” awareness program, providing workers with knowledge about their rights, legal obligations, and societal norms in the UAE. The midday work ban, preventing outdoor work from 12:30 to 15:00 between June 15 and September 15, demonstrates successful cooperation between federal and local government sectors and the private sector.

In 2023, MoHRE further addressed the safety of delivery bike drivers by establishing 356 rest stations with basic services across the UAE. This initiative, supported by relevant government agencies, aims to protect workers from heat-related issues during the summer months and afternoon work bans.

The UAE’s commitment to workforce well-being is reflected in its global rankings. Topping several indicators related to the labor market, the UAE ranked first globally in the “Talent Attractiveness Index” and secured top positions in the World Competitiveness Ranking 2022 and the Global Innovation Index 2022.

In summary, the UAE’s comprehensive workforce system underscores its commitment to a balanced and inclusive approach, showcasing significant achievements in workers’ protection, unemployment insurance, alternative gratuity schemes, and awareness programs. These initiatives contribute to the country’s global leadership in human resource management and its position as an attractive destination for talents and experiences.