New laws come into effect in the U.A.E. in January 2023; Here's everything you need to know


New laws come into effect in the U.A.E. in January 2023; Here's everything you need to know

The U.A.E. set numerous global records. And the new year is expected to be yet another historic one for the nation. The nation has commenced several initiatives, including three new laws in the new year:

Unemployment Insurance Scheme
- Emiratis and expats employed by the federal government and the commercial sector will receive some type of social security if they abruptly lose their jobs. Like , for example if an employee is fired, the unemployment insurance scheme will provide up to three months of financial support. The scheme opened for subscription on January 1, 2023.
- The subscription fees are determined by the employee's basic salary.
- A monthly subscription fee of Dh5 (or Dh60 annually) must be paid by individuals with a basic salary of Dh16,000 or less to be eligible for compensation payments of up to Dh10,000 per month.
- The second group, whose basic salary exceeds Dh16,000, is required to pay Dh10 monthly (or Dh120 annually), and they are only eligible for a maximum of Dh20,000 in cash per month.
- The insurance premiums may be paid on a monthly, quarterly, once every six months, or annual basis.
- The insurance benefit is estimated at 60% of the employee's basic salary for the last six months before being laid off.

Emiratization Rule
- Companies with more than 50 employees are required to achieve an Emiratization rate of 2% for skilled jobs to avoid penalties.
- Companies that fail to comply will be subject to financial penalties, which will be collected starting from January 2023.
- Every non-appointed UAE national will be subject to a monthly fee of Dh 6,000, which must be paid in full.

Note: To achieve the Emiratization target, a private company must hire an Emirati to replace an Emirati who resigns. Companies that successfully hit their goals will be given significant incentives, such as discounts of up to 80% on MoHRE fees.

Ban on single-use plastics
- Single-use plastics are prohibited in Ajman and Umm Al Quwain. On Sunday, January 1, 2023, the prohibition came into effect.
- The shops must now charge customers 25 fils for each plastic bag.