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UAE Free Zone Workers Given Choice on Unemployment Insurance Coverage

  • Publish date: Wednesday، 04 October 2023 Last update: Tuesday، 10 December 2024
UAE Free Zone Workers Given Choice on Unemployment Insurance Coverage

The UAE's Ministry of Human Resources and Emiratisation has confirmed that signing up for the unemployment insurance program is optional for free zone employees. This means that free zone employees can choose whether or not they want to participate in the program.

Earlier, it was reported that subscribing to the scheme was obligatory for all Emirati and foreign employees, regardless of whether they worked in a free zone or not.

Read More: Who Pays for Unemployment Insurance Scheme? Employee or Employer?

A message on social media platform X, formerly Twitter, from the UAE Ministry of Human Resources and Emiratisation on Monday said joining the unemployment insurance scheme was optional for employees at local and semi-government bodies, and those working in free zone companies.

Read More: Unemployment Insurance Scheme Fines to be Cut from Employees Salary

“The second phase of the system on May 2, 2023, gave the chance for employees in local government bodies, semi-government, and free zones to register (optional) via the ID number,” said the ministry.

Responsibility for registering for the unemployment insurance scheme is the choice of each employee, but employers have the option to register their staff in the system. More than 5.7 million employees have subscribed to the scheme since it went into effect on January 1.

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