Have you signed up for the UAE’s new unemployment insurance programme, which was set to begin in 2023? Online enrollment is quick and easy, and it provides federal government and private sector employees in the UAE with financial protection in the event of job loss.
However, what happens if you decide to change jobs after joining the programme? Do you require a new insurance policy to be purchased?
Cabinet Resolution No. 97 of 2022 relates to the regulations and processes for executing the unemployment insurance system The Resolution outlines the circumstances in which the employee is safeguarded from a loss of income in the case of job loss.
Regardless of the employer, the employee’s engagement is seen as a personal contribution. The insured employee then enters only their personal data—such as their personal email address, phone number, and Emirates ID—on the ILOE Portal.
Except for the work permit number, the insured is not needed to provide any information about the business they are employed with to the Ministry of Human Resources and Emiratization (MOHRE). The insured person is responsible for paying the insurance premium, not the employer.
You do not need to subscribe to a new policy
An employee’s ILOE insurance coverage would not be affected by a change in employment.
As long as the insured complies with the general subscription requirements outlined in the ministerial directive, such a [job] change will not require cancelling their present subscription and enrolling in a new insurance policy. The insured must, however, give the Insurance Authority the updated new permission card information if their place of employment changes.
As long as there hasn’t been any deception or manipulation, a change in the insured’s place of employment shouldn’t have any impact on the insured’s right to receive the insurance amount as a result of his or her unemployment.
Upgrade policy if needed
However, you would be required to pay the difference in the premium amounts if your employment change caused you to move from Category A to Category B within the programme.
In the upcoming days, the UAE Cabinet is anticipated to provide more details on the steps involved in putting the resolution into practice.