UAE To Begin Fines and Work Bans for Uninsured Workers, 14% Still Not Signed Up
The UAE will fine workers who have not signed up for mandatory unemployment insurance and could even deny future work permits.
The Ministry of Human Resources and Emiratisation (MoHRE) said it will begin collecting financial penalties from workers who remain unregistered in the Unemployment Insurance Scheme or who fail to pay their periodic instalments as per the payment schedule they selected upon registration.
Around 14 percent of the eligible workforce has not yet signed up for the insurance scheme.
UAE unemployment insurance
The legal deadline for subscribing to the system ended in October 2023, 10 months after the system’s implementation in the UAE on January 1.
This period allowed all eligible workers to register in the scheme to avoid financial penalties and access the system’s benefits.
The UAE Ministry said: “The financial penalties that were implemented affected approximately 14 percent of all workers, the group that had failed to register in the system.
“Workers who fail to subscribe to the system face an AED400 fine, while those who do not meet their regular payment obligations incur a fine of AED200.”
The Ministry noted that workers who are subject to fines can pay them using the MoHRE smart application, website, or by visiting authorised business service centres.
The Ministry’s digital channels allow users to submit requests to pay fees in installment plans to reduce the burden on workers.
Requests to be exempt from the system can also be submitted, along with supporting documents, and the Ministry notifies applicants of its decision in that regard within 15 working days through its official channels.
The Ministry urged workers to pay their due fines promptly in order to avoid administrative measures that will be taken against non-compliant individuals, including being denied new work permits.
