The announcement of job loss insurance is a landmark breakthrough in UAE employment history. As you might be aware, both the ex-pats and citizens can use the scheme announced by Al Awar, Minister of Human Resources and Emiratisation. The scheme is expected to benefit a significant number of people who have lost their jobs due to unforeseen circumstances in Dubai.
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Key Factors of Job Loss Insurance
You are eligible to receive the redundancy payment under the mandatory scheme, which will be effective from early 2023.
The scheme provides an income of 60 percent of your basic salary, up to Dh20000 per month.
The job loss insurance acts as a savior until the recipients find an alternative job. However, it is only for a limited period of time.
The mandatory job loss insurance scheme will be taken into effect from next year and applies to people of all nationalities who belong to private and public sectors.
Opportunities
Potential employees with solid expertise in their respective fields will be able to enroll themselves in the scheme and secure themselves from unexpected job loss.
As mentioned earlier, the employees will receive a maximum of Dh20, 0000 per month for an annual charge of Dh40 to Dh100.
One of the notable benefits is that the insurance package can be customized based on an individual’s salary. For instance, a low-income employee might want to set up an insurance package to suit their financial capabilities. The insurance companies shall facilitate such expectations. we are also cheapest health insurance in abu dhabi
The beneficiaries will be able to acquire the scheme’s benefits directly through the insurance companies. This essentially helps authorities serve the needy employees without imposing additional charges.
The primary objective of job loss insurance is to protect the interests of the UAE employees and enable diversified opportunities for them to stay in the country.
The scheme is intended to boost the employees’ morale, not lose hope, and actively engage in job hunt programs.
Many talent hunt programs are expected to take place with motivating objectives for providing job opportunities for potential candidates who have lost their jobs.
Challenges
Challenges are certainly a part of the job loss insurance for the employees. Though the scheme is expected to provide a secure mindset, the employees need to fasten their quest for job search.
The job loss insurance covers employees who are a part of registered public and private sector firms, and it does not cover domestic workers.
You could be someone who has lost a job due to unforeseen circumstances or the company’s bankruptcy. In both cases, the loss needs to be recovered only by acquiring a new job and not trusting the job loss insurance in the long run.
The UAE ministry has also announced that the insurance will be cut off after a certain period of time. The dignitaries do not specifically mention the time. Therefore, it is believed it could be withdrawn at any time after a limited period of time.
The salary packages of employees who’ve lost their jobs need to be compensated by the new job. This is a crucial factor for the recovery of the financial lifestyle and commitments of the employees.
Yet another significant challenge is the nature of competitiveness in the job market. For instance, let us consider two employees with similar salary packages who have lost their jobs exactly in the same timeframe. Now the job loss insurance will cover their timely survival needs. However, when they look for jobs, the relative competency might pose serious challenges to the lives of two employees.
It is challenging to arrive at a solid solution in the above scenario as it completely depends upon the comprehensive analysis of skill set, experience, and managerial acumen.
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