• The UAE has introduced a new programme that means people who lose their job can receive a basic cash payment each month. All photos: Getty Images
    The UAE has introduced a new programme that means people who lose their job can receive a basic cash payment each month. All photos: Getty Images
  • If an employee loses their job they will receive a monthly payment of 60 per cent of their salary, up to Dh20,000.
    If an employee loses their job they will receive a monthly payment of 60 per cent of their salary, up to Dh20,000.
  • Domestic workers, anyone working on temporary contracts, under 18s and retirees are exempt from the new policy.
    Domestic workers, anyone working on temporary contracts, under 18s and retirees are exempt from the new policy.
  • The monthly payment while unemployed is to help people pay their basic living costs.
    The monthly payment while unemployed is to help people pay their basic living costs.
  • If the terminated employee does not find another job after a certain amount of time, the financial support will stop.
    If the terminated employee does not find another job after a certain amount of time, the financial support will stop.

UAE's new unemployment insurance scheme will give employees vital protection, experts say


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The UAE's new unemployment support programme will serve as a “security blanket” for residents and citizens, and is a progressive measure that gives employees crucial protection, experts say.

The mandatory programme, scheduled to be introduced in January 2023, is aimed at Emirati and foreign employees working in both the private and public sectors.

The new federal law was announced on Thursday by Dr Abdulrahman Al Awar, Minister of Human Resources and Emiratisation.

The law says that every employee will pay into an insurance company initiative, although officials have not yet said how the contributions will be made and whether they will, for example, be paid through their employer or taken out of their pay.

Employees will be able, however, to select from different insurance packages provided by different companies in the country.

Those who lose their jobs will receive 60 per cent of their basic salary each month — up to Dh20,000 — for a limited period of time to help with living costs.

If the unemployed person does not find employment within a certain period, financial support will end. The time period for this has not been made clear.

In the UAE, employees are paid a lump sum every month. But salaries are commonly broken down into “basic”, “housing” and “transport”, with the “basic wage” earned by an employee typically 50 to 65 per cent of the total amount received.

It’s reassuring to know that the scheme will act as a security blanket in the future, providing vital protection to workers
Zahra Clark,
head of Tiger Recruitment, Middle East and North Africa region

“The Emirates is demonstrating once again that it has an ambitious vision for the future of its citizens and residents,” Mohamed Seghir, chief executive of Hayah Insurance Company, told The National.

“By introducing such a scheme, the economic resilience of the community will be highly improved and employees will feel safer about their future and hence more productive, contributing in return to an improved labour ecosystem.”

Mr Seghir said his company planned to launch a workplace savings product called "employee secure saver" for workers in the UAE to help them prepare for future pension and end-of-service benefits.

Experts said the decision to introduce the unemployment insurance programme will draw and retain talent in the country across the private and public sector.

“It means that we become world class,” said Shahram Safai, partner Afridi and Angell legal consultants.

“With the impending introduction of unemployment benefits, the UAE moves towards the tier-one jurisdictions of this world in relation to labour laws and protection of employees.

“This is beneficial for employees for sure, but also for businesses because it enables businesses to recruit and attract the best employees by offering world-class protections.”

The new unemployment support programme will help people pay essential bills if they lose their job. Ruel Pableo / The National
The new unemployment support programme will help people pay essential bills if they lose their job. Ruel Pableo / The National

Vital protection

The right to live in the UAE was previously predominately linked to employment or owning a business in the country, as is the case in many nations in the Gulf.

A series of recent policy decisions have changed that, however, with the introduction of new job-seeker and long-term visas so people do not have to leave the UAE immediately if they lose their positions.

Zahra Clark, head of Tiger Recruitment, Middle East and North Africa region, spoke of the buffer the new unemployment pay would offer families.

“It’s reassuring to know that the scheme will act as a security blanket in the future, providing vital protection to workers,” she said.

“During the pandemic, we have seen how people can lose their jobs without any warning and the devastating impact this can have on them and their families.

“Imagine suddenly finding yourself without an income when you have spiralling rent, bills and even school fees to pay.”

She said the key would be in the implementation of the plan.

“With the cost of living rising and people’s budgets shrinking, it will need to be affordable,” Ms Clark said.

The government said more specifics on the new system will be made available at a later date.

 

 

Company profile

Company name: Dharma

Date started: 2018

Founders: Charaf El Mansouri, Nisma Benani, Leah Howe

Based: Abu Dhabi

Sector: TravelTech

Funding stage: Pre-series A 

Investors: Convivialite Ventures, BY Partners, Shorooq Partners, L& Ventures, Flat6Labs

War and the virus
hall of shame

SUNDERLAND 2002-03

No one has ended a Premier League season quite like Sunderland. They lost each of their final 15 games, taking no points after January. They ended up with 19 in total, sacking managers Peter Reid and Howard Wilkinson and losing 3-1 to Charlton when they scored three own goals in eight minutes.

SUNDERLAND 2005-06

Until Derby came along, Sunderland’s total of 15 points was the Premier League’s record low. They made it until May and their final home game before winning at the Stadium of Light while they lost a joint record 29 of their 38 league games.

HUDDERSFIELD 2018-19

Joined Derby as the only team to be relegated in March. No striker scored until January, while only two players got more assists than goalkeeper Jonas Lossl. The mid-season appointment Jan Siewert was to end his time as Huddersfield manager with a 5.3 per cent win rate.

ASTON VILLA 2015-16

Perhaps the most inexplicably bad season, considering they signed Idrissa Gueye and Adama Traore and still only got 17 points. Villa won their first league game, but none of the next 19. They ended an abominable campaign by taking one point from the last 39 available.

FULHAM 2018-19

Terrible in different ways. Fulham’s total of 26 points is not among the lowest ever but they contrived to get relegated after spending over £100 million (Dh457m) in the transfer market. Much of it went on defenders but they only kept two clean sheets in their first 33 games.

LA LIGA: Sporting Gijon, 13 points in 1997-98.

BUNDESLIGA: Tasmania Berlin, 10 points in 1965-66

Medicus AI

Started: 2016

Founder(s): Dr Baher Al Hakim, Dr Nadine Nehme and Makram Saleh

Based: Vienna, Austria; started in Dubai

Sector: Health Tech

Staff: 119

Funding: €7.7 million (Dh31m)

 

Western Region Asia Cup T20 Qualifier

Sun Feb 23 – Thu Feb 27, Al Amerat, Oman

The two finalists advance to the Asia qualifier in Malaysia in August

 

Group A

Bahrain, Maldives, Oman, Qatar

Group B

UAE, Iran, Kuwait, Saudi Arabia

 

UAE group fixtures

Sunday Feb 23, 9.30am, v Iran

Monday Feb 25, 1pm, v Kuwait

Tuesday Feb 26, 9.30am, v Saudi

 

UAE squad

Ahmed Raza, Rohan Mustafa, Alishan Sharafu, Ansh Tandon, Vriitya Aravind, Junaid Siddique, Waheed Ahmed, Karthik Meiyappan, Basil Hameed, Mohammed Usman, Mohammed Ayaz, Zahoor Khan, Chirag Suri, Sultan Ahmed

David Haye record

Total fights: 32
Wins: 28
Wins by KO: 26
Losses: 4

MATCH INFO

Champions League quarter-final, first leg

Ajax v Juventus, Wednesday, 11pm (UAE)

Match on BeIN Sports

Safety 'top priority' for rival hyperloop company

The chief operating officer of Hyperloop Transportation Technologies, Andres de Leon, said his company's hyperloop technology is “ready” and safe.

He said the company prioritised safety throughout its development and, last year, Munich Re, one of the world's largest reinsurance companies, announced it was ready to insure their technology.

“Our levitation, propulsion, and vacuum technology have all been developed [...] over several decades and have been deployed and tested at full scale,” he said in a statement to The National.

“Only once the system has been certified and approved will it move people,” he said.

HyperloopTT has begun designing and engineering processes for its Abu Dhabi projects and hopes to break ground soon. 

With no delivery date yet announced, Mr de Leon said timelines had to be considered carefully, as government approval, permits, and regulations could create necessary delays.

Friday’s fixture

6.15pm: Al Wahda v Hatta

6.15pm: Al Dhafra v Ajman

9pm: Al Wasl v Baniyas

9pm: Fujairah v Sharjah

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Starring: Nayanthara, Vignesh Shivan, Radhika Sarathkumar, Nagarjuna Akkineni

Director: Amith Krishnan

Rating: 3.5/5

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What it means to be a conservationist

Who is Enric Sala?

Enric Sala is an expert on marine conservation and is currently the National Geographic Society's Explorer-in-Residence. His love of the sea started with his childhood in Spain, inspired by the example of the legendary diver Jacques Cousteau. He has been a university professor of Oceanography in the US, as well as working at the Spanish National Council for Scientific Research and is a member of the World Economic Forum’s Global Future Council on Biodiversity and the Bio-Economy. He has dedicated his life to protecting life in the oceans. Enric describes himself as a flexitarian who only eats meat occasionally.

What is biodiversity?

According to the United Nations Environment Programme, all life on earth – including in its forests and oceans – forms a “rich tapestry of interconnecting and interdependent forces”. Biodiversity on earth today is the product of four billion years of evolution and consists of many millions of distinct biological species. The term ‘biodiversity’ is relatively new, popularised since the 1980s and coinciding with an understanding of the growing threats to the natural world including habitat loss, pollution and climate change. The loss of biodiversity itself is dangerous because it contributes to clean, consistent water flows, food security, protection from floods and storms and a stable climate. The natural world can be an ally in combating global climate change but to do so it must be protected. Nations are working to achieve this, including setting targets to be reached by 2020 for the protection of the natural state of 17 per cent of the land and 10 per cent of the oceans. However, these are well short of what is needed, according to experts, with half the land needed to be in a natural state to help avert disaster.

Ten tax points to be aware of in 2026

1. Domestic VAT refund amendments: request your refund within five years

If a business does not apply for the refund on time, they lose their credit.

2. E-invoicing in the UAE

Businesses should continue preparing for the implementation of e-invoicing in the UAE, with 2026 a preparation and transition period ahead of phased mandatory adoption. 

3. More tax audits

Tax authorities are increasingly using data already available across multiple filings to identify audit risks. 

4. More beneficial VAT and excise tax penalty regime

Tax disputes are expected to become more frequent and more structured, with clearer administrative objection and appeal processes. The UAE has adopted a new penalty regime for VAT and excise disputes, which now mirrors the penalty regime for corporate tax.

5. Greater emphasis on statutory audit

There is a greater need for the accuracy of financial statements. The International Financial Reporting Standards standards need to be strictly adhered to and, as a result, the quality of the audits will need to increase.

6. Further transfer pricing enforcement

Transfer pricing enforcement, which refers to the practice of establishing prices for internal transactions between related entities, is expected to broaden in scope. The UAE will shortly open the possibility to negotiate advance pricing agreements, or essentially rulings for transfer pricing purposes. 

7. Limited time periods for audits

Recent amendments also introduce a default five-year limitation period for tax audits and assessments, subject to specific statutory exceptions. While the standard audit and assessment period is five years, this may be extended to up to 15 years in cases involving fraud or tax evasion. 

8. Pillar 2 implementation 

Many multinational groups will begin to feel the practical effect of the Domestic Minimum Top-Up Tax (DMTT), the UAE's implementation of the OECD’s global minimum tax under Pillar 2. While the rules apply for financial years starting on or after January 1, 2025, it is 2026 that marks the transition to an operational phase.

9. Reduced compliance obligations for imported goods and services

Businesses that apply the reverse-charge mechanism for VAT purposes in the UAE may benefit from reduced compliance obligations. 

10. Substance and CbC reporting focus

Tax authorities are expected to continue strengthening the enforcement of economic substance and Country-by-Country (CbC) reporting frameworks. In the UAE, these regimes are increasingly being used as risk-assessment tools, providing tax authorities with a comprehensive view of multinational groups’ global footprints and enabling them to assess whether profits are aligned with real economic activity. 

Contributed by Thomas Vanhee and Hend Rashwan, Aurifer

UAE currency: the story behind the money in your pockets
'Cheb%20Khaled'
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War

Director: Siddharth Anand

Cast: Hrithik Roshan, Tiger Shroff, Ashutosh Rana, Vaani Kapoor

Rating: Two out of five stars 

The specs

Engine 60kwh FWD

Battery Rimac 120kwh Lithium Nickel Manganese Cobalt Oxide (LiNiMnCoO2) chemistry

Power 204hp Torque 360Nm

Price, base / as tested Dh174,500 

The burning issue

The internal combustion engine is facing a watershed moment – major manufacturer Volvo is to stop producing petroleum-powered vehicles by 2021 and countries in Europe, including the UK, have vowed to ban their sale before 2040. The National takes a look at the story of one of the most successful technologies of the last 100 years and how it has impacted life in the UAE. 

Read part four: an affection for classic cars lives on

Read part three: the age of the electric vehicle begins

Read part two: how climate change drove the race for an alternative 

The burning issue

The internal combustion engine is facing a watershed moment – major manufacturer Volvo is to stop producing petroleum-powered vehicles by 2021 and countries in Europe, including the UK, have vowed to ban their sale before 2040. The National takes a look at the story of one of the most successful technologies of the last 100 years and how it has impacted life in the UAE.

Read part three: the age of the electric vehicle begins

Read part two: how climate change drove the race for an alternative 

Read part one: how cars came to the UAE

Squid Game season two

Director: Hwang Dong-hyuk 

Stars:  Lee Jung-jae, Wi Ha-joon and Lee Byung-hun

Rating: 4.5/5

F1 The Movie

Starring: Brad Pitt, Damson Idris, Kerry Condon, Javier Bardem

Director: Joseph Kosinski

Rating: 4/5

VEZEETA PROFILE

Date started: 2012

Founder: Amir Barsoum

Based: Dubai, UAE

Sector: HealthTech / MedTech

Size: 300 employees

Funding: $22.6 million (as of September 2018)

Investors: Technology Development Fund, Silicon Badia, Beco Capital, Vostok New Ventures, Endeavour Catalyst, Crescent Enterprises’ CE-Ventures, Saudi Technology Ventures and IFC

Updated: May 13, 2022, 6:38 AM