Cabinet Resolution No. (97) of 2022 Concerning Mechanisms and Controls for Implementing the Unemployment Insurance Scheme (labour, residency and leberal professions law)

Article (1)  
Definitions  
The definitions listed in the Federal Decree -Law No. (13) of 2022 , referred to herein 
above , shall apply  to this resolution. In addition, the following words and expressions 
shall bear the meaning ascribed thereto , unless the context requires otherwise.  
Basic 
Insurance 
Package   
: The package that grants compensation to the insured at (60%) 
of the contribution salary as described in this resolution, 
without any additional benefits.  Cabinet Resolution of 20 22 Concerning the Mechanisms and Controls of Implementing the 
Unemployment Insurance Scheme  2 
 Subscription 
Salary  : The basic monthly wage of the worker or the monthly basic 
salary of the employee, based on which the insurance premium 
and the compensation sum are calculated.

Article (2)  
Insurance Scheme 's Scope of Application  
All workers/employees of the Federal Government  and Private Sectors shall subscribe 
to the Unemployment Insurance Scheme  through purchasing an insurance policy 
whereby the insured insures himself in the event of termination of his service in 
accordance with  the relevant cases of eligibility , with the e xception of the following 
categories:  
1. Investor ( The person owning and working at the establishment);  
2. Domestic Workers ; 
3. Temporary contract workers;  
4. Juveniles under the age of (18) eighteen;  
5. Citizens who have fulfilled the conditions for superannuation , or the retirees who 
receive a retirement pension and have joined a new job .

Article (3) 
Insurance Packages  
Without prejudice to the legislation and procedures applicable by the Central Bank, it 
is necessary to obtain the Ministry’s prior approval for the insurance packages offered 
by the service provider in accordance with Federal Decree -Law No. (13) of 2022 
referred to  hereinabove .

Article (4) 
Service Provider Requirement s 
In order for the service provider to obtain the approval of the Ministry for providing 
unemployment insurance se rvice s, the service provider shall be required to :  
1. Be an insurer licensed by the Central Bank;  Cabinet Resolution of 20 22 Concerning the Mechanisms and Controls of Implementing the 
Unemployment Insurance Scheme  3 
 2. Have  a rating of not less than the minimum rating specified in the table below, or 
an equivalent rating from other international rating agencies recognized by the 
Central Bank, in accordance with the latest rating issued by the accrediting body.  
Standard and 
Poor  Moody's  AM Best  Fitch Rating  
BBB  Baa  B+ BBB  
3. Be financially solvent  according to the Central Bank's requirements ; 
4. Have a governance structure that satisfies the requirements of the Central Bank;  
5. Provide a proof that it is providing a high -quality and efficient service; and  
6. Provide a proof that it has the systems , mechanisms and digital channels required 
for providing the service to those insured on the Scheme .

Article (5) 
Service Providers Obligations  
The service provider shall conclude with the Ministry an unemployment Insurance 
Service Agreement that sets out the following details : 
1. The service provider's obligations vis-à-vis the insured;  
2. The  governance mechanisms for collecting the required insurance premiums;  
3. The mechanisms for compensating the eligible insured persons;  
4. Maintaining data confidentiality;  
5. Standards and levels of service required from the service provider; and  
6. Any other obligations defined by the Ministry.

Article (6)  
Insurance Premium Collection Mechanism  
1. The service provider shall issue the insurance policy of the insured for a period of 
not less than (12)  twelve  months . 
2. Subscription shall be done,  and insurance premiums shall be collected in 
accordance with the mechanism to be established by a resolution of the Minister.  
3. The insured may select the mechanism and the periodicity deemed appropriate for 
the payment of the ins urance premiums specified in the approved insurance policy 
and according to the mechanisms specified by the Minister.  Cabinet Resolution of 20 22 Concerning the Mechanisms and Controls of Implementing the 
Unemployment Insurance Scheme  4

Article (7)  
Subscription Values  
1. The insured shall pay the value of the basic insurance package premium in 
accordance with the subscription salary value as follows:  
a. The first insurance category: up to (AED 5)  (five dirhams) per month, if the 
subscription salary is (AED 16,000) (sixteen thousand dirhams) or less;  and  
b. The second insurance category: up to (AED 10)  (ten dirhams) per month, if the 
subscription salary exceeds (AED 16,000) (sixteen thousand dirhams).  
2. The Cabinet may, based on the proposal of the Minister, amend the value of 
subscription and the prescribed compensation values,  and introduce new 
categories.

Article (8)  
Security for Insurance Premiums  Payment  
1. Should the worker /employee fail to subscribe to the unemployment insurance 
scheme , or should the insured fail to pay the prescribed insurance premium for (3) 
three months from the due date of the underlying premium , [he] shall not benefit 
from the Scheme , and, in which case, [he] shall subscribe or re -subscribe by 
purchasing a new insurance policy the becomes effective as of the date of 
purchase . In addition, [he] shall pay all the amounts due plus a fine to be collected 
by the Ministry in the amount of (AED 400) four hundred dirhams in case of the 
worker 's/employee's failure to subscribe to the Scheme , and (AED 200) two 
hundred dirhams in the event of the insured's failure to pay the prescribed 
insurance premiums for more  than (3) three months. These amounts shall be 
collected as follows:  
a. By way of deduction  from the insured's account designated for receiving his 
wage as shown the Wages Protection System or any other alternative systems ; 
or 
b. By way of deduction from end of service gratuity  or any other alternative 
schemes . 
2. The Minister shall s et the time frames  for the registration of the insured and his 
subscription to the Scheme , in addition to the controls and p rocedures required to Cabinet Resolution of 20 22 Concerning the Mechanisms and Controls of Implementing the 
Unemployment Insurance Scheme  5 
 ensure his commitm ent to the payment of the premiums and fines related to the 
insurance policies and  may allow the insured to pay the amount in installments or 
exempt him from the fines referred to in this article.

Article (9)  
Conditions for Benefiting from Insurance Coverage  
Without prejudice to article (5) of Federal Decree Law No. (13) of 2022 referred to  
hereinabove , the insured shall be entitled to benefit from the insurance coverage if the 
following conditions are met:  
1. That term of the contribution  of the insured is not less than (12) consecutive 
months in the unemployment insurance scheme;  
2.  That the insured has paid all the insurance premiums in accordance with the 
periodicity he has determined;  
3. That the insured has provided evidence to that he is unemployed for any reason 
other than his resignation.  
4. That the insured has not been dismissed from work for disciplinary reasons under 
the provisions of the applicable legislation regulating  labor relation in the Private 
Sector and Human Resou rces in the Federal Government.  
5. That the claim is submitted within (30) thirty days from the date of the termination 
of employment relation ship  or the determination of the labor claim referred to the 
court;  
6. That no pending complaint for absence from work has  been filed against the 
insured;  
7. That the claim for compensation is not based on cheating or fraud and that the 
establishment i n which he wor ks is not a fictitious one ; 
8. The loss of work is not the result of non -peaceful labor disturbances or 
interruptions, whether they resulted in damage or not;  
9. That the  insured is residing in the State  legally  
 
 
 
 Cabinet Resolution of 20 22 Concerning the Mechanisms and Controls of Implementing the 
Unemployment Insurance Scheme  6

Article (10)  
Compensation Value  
1. The compensation shall be paid on monthly basis at (60%) of the subscription 
salary for up to (3) three months for each claim from the start date of 
unemployment , so that the value of compensation does not exceed (AED 10,000) 
ten thousand dirhams for the first  category and (AED 20,000) twenty thousand for 
the second category.  
2. The maximum period for benefiting from the compensation within the term of 
service of the insured within the labor market in the State shall not exceed (12) 
twelve months.

Article (11)  
Additional Benefits  
The insured may subscribe to additional benefit s of the basic package through 
coordination with the service provider.

Article (12)  
Compensation Claim Mechanism  
The insured shall submit the claim to the service provider within (30) thirty days from 
the termination date of employment relation ship, by filing an application to benefit 
from unemployment insurance scheme in accordance with the mechanism specified 
under  a resolution of the Minister and  accompanied by the documents evidencing the 
insured's eligibility  for compensation.

Article (13)  
Obtaining Compensation from the Service Provider  
In case the  insured is eligible for compensation, the service provider shall pay the 
compensation not later than two weeks from the date of receiving the claim that is 
compatible with the established standards and the eligibility conditions. In addition, 
the service provider shall transfer t he compensation amount to the account of the 
insured in accordance with the method prescribed by the insured. The insurance Cabinet Resolution of 20 22 Concerning the Mechanisms and Controls of Implementing the 
Unemployment Insurance Scheme  7 
 coverage shall be paid under this scheme in addition to any other insurance coverage 
by virtue of other insurance policies held by t he insured.

Article (14)  
Unemployment Insurance Scheme Governance Procedures  
1. The service provider shall process the insurance claims in accordance with the 
controls and conditions set out in the insurance policy and the legislation of the 
Central Bank in force. The 1 Ministry shall notify the Central Bank  should the 
service provider violate the conditions and controls of the insu rance policy, so that 
the disputes arising from the policy shall be settled in accordance with the 
mechanism  established by the Central Bank .  
2. The Ministry shall perform the periodic review of the Basic Agreement, the 
annexes of the Basic Agreement, the value of the insurance premiums and  the 
channels to access to the service , and in line with this, it shall do the measures 
required to ensure the optimal implementation of this resolution.  
3. The service provider shall provide the technical reports related to unemployment 
insurance service, update the Ministry on the movement of the premium accounts 
and deliver the amounts due to the insured on a monthly basis.

Article (15)  
General Provisions  
1. If it is established that the insured has provided incorrect data on the subscription 
salary, his contractual relation with his employer or the circumstance surrounding 
the termination of his service, the service provider shall be entitled to recover the 
full compensation amount disbursed to the insured, without prejudice to any 
penalties imposed on the insured under the legislation applicable in the State.  
2. If the employer's collusion with the employee to obtain the benefits of 
unemployment insurance  is es tablished, without prejudice to carrying out the 
necessary measures to impose the penalties stipulated in the laws and resolutions 
in force in the State, an administrative fine shall be imposed on the establishment 
by the Ministry in the amount of (AED 20, 000) twenty thousand dirhams per case.  Cabinet Resolution of 20 22 Concerning the Mechanisms and Controls of Implementing the 
Unemployment Insurance Scheme  8 
 3. The courts of the United Arab Emirates shall have exclusive jurisdiction to hear and 
adjudicate on any dispute arising from the implementation of the unemployment 
scheme , which shall be subject to the laws and legisl ation in force in the United 
Arab Emirates.

Article (16)  
Federal Gov ernme nt Employees  
The Federal Authority for Government Human Resources shall, in coordination with 
the Ministry of Finance, implement the provisions of this resolution as regards the 
employees of the Federal Government.

Article (17)  
Subscription to the Scheme  
1. The persons governed by the provisions of Federal -Law No. (13) of 2022 referred 
to herein above shall subscribe to the Unemployment Insurance Scheme within a 
4-month period from the date of entry into force hereof.  
2. The Minister of Human Resou rces and Emiratization  is hereby autho rized to 
extend the time limit referred to in Paragraph (1) of this article in accordance with 
the requirement for regulating the labor market .

Article (18)  
Publication and Entry into Force  
This Resolution shall be published in the official gazette and shall enter into force as 
of the day following the date of its Publication . 
 
Mohammed bin Rashid Al Maktoum  
Prime Minister  
 
Issued by us:  
On: 18 Rabi ' Al Awwal  1444 A H 
Corresponding to : 14 October 2022 AD