Abu Dhabi: Driven by its historic values and inclusive culture, the UAE continues to refine its comprehensive workforce system.
This balanced approach ensures that both employee rights and employers’ needs are addressed, cementing the UAE’s position as a global leader in human resource management.
The UAE’s commitment to its workforce is reflected in tangible results. The initiatives of the Ministry of Human Resources and Emiratization (MoHRE) have created a world-class environment for workers, attracting talent, boosting productivity and unleashing creativity.
Worker Protection Program
The ministry revealed that the percentage of private sector workers covered by the “Worker Protection Program” has reached 98.8 percent, Wam reported. The ministry indicated that more than 24,000 workers have benefited from the services provided by the program in the last five years, which included claims related to unpaid wages, unpaid end of service and other workers’ rights, noting that the total amount paid to Workers’ claims through the program amounted to more than Dh202 million.
Unemployment insurance scheme
The ministry also referred to the “Unemployment Insurance Regime” that arises in accordance with Federal Decree-Law No. 13 of 2022 on Unemployment Insurance, whose objective is to guarantee the availability of income for a limited period for the insured during the period of unemployment. until alternative employment opportunities are available in accordance with the provisions of this decree.
The ministry stated that the number of subscribers to the “Unemployment Insurance Plan” has reached more than 6.7 million subscribers to the system, which contributes to providing an umbrella of social protection for the workforce, guaranteeing the continuity of a life. worthy for them and their families. until alternative job opportunities are available, and attract and retain the best global talent to achieve a competitive knowledge-based economy.
This unique system provides security for employees who lose their job for reasons other than disciplinary action or resignation until they find a new job. Qualified employees are compensated with monthly cash benefits of up to 60 percent of the average salary in the last six months before losing their job.
These cash benefits are given for 3 months, provided they have been subscribed to the system for at least 12 months. The system includes employees of the federal government and the private sector, both citizens and residents. In this context, the MoHRE and the Securities and Commodities Authority have begun to implement the optional alternative end-of-service gratuity system, the “Savings Plan”.
Through this scheme, the amounts allocated to the termination of service bonus for employees who work in companies that choose to join the system are invested through investment funds approved by the ministry and the authority, with the objective of develop employee savings and benefit from the returns on their investments.
This is expected to improve the ease of doing business, increase the economic impact of both the employer and employee and support the country’s economic system. Furthermore, the cost of subscribing to the system for the employer in the medium term is lower than the cost of paying the end-of-service bonus in the current system.
This is in implementation of Cabinet Decision No. 96 of 2023 on the optional alternative end-of-service gratuity system for private sector employees, the “Savings System.”
The “Savings Plan” contributes to increasing the attractiveness of the labor market for domestic and international talents and experiences, thus confirming the UAE’s position as one of the leading destinations to live and work.
This is achieved by providing innovative systems that achieve the individual benefits they aspire to achieve, ensuring and protecting the financial rights of workers, providing opportunities to save and develop them, achieving returns on investments in them and reducing the number of labor disputes between workers. and employers on end-of-service bonuses.
In the context of its efforts to sensitize workers about their rights and obligations, the MoHRE referred to the “Tawjeeh” awareness programme, through which the worker learns about their rights, legal obligations and the prevailing customs and traditions in the society. of the United Arab Emirates.
Regarding the ban on working at noon, which prohibits workers from working from 12:30 to 15:00 during the period from June 15 to September 15 of each year under the sun and in open spaces, the Ministry highlighted the great cooperation of all interested partners. in the federal and local government sectors and in the private sector in the successful implementation of this decision.
During 2023, MoHRE announced the provision of 356 rest stations secured with basic services for the use of bicycle delivery people in all areas of the state, this after coordination between the ministry and the companies responsible for the delivery people and with the support and participation of interested government agencies.
The ministry stated that this measure arises from the common concern for the safety of delivery workers and to prevent them from suffering from heat stroke and heat exhaustion during the performance of their work in the summer months, given the high temperatures, especially during the afternoon. when there is It is prohibited to carry out work under the sun and in open spaces.
It is worth noting that the UAE tops a number of global indicators related to the labor market, having ranked first globally in the “Talent Attractiveness Index” according to the Global Prosperity Report 2023 issued by the British Legatum Institute. , and they also ranked first. globally in a series of indicators from the 2022 World Competitiveness Rankings report published by the International Institute for Management Development (IMD) in Switzerland, namely “few labor disputes”, “low compensation costs for the termination of worker services”, “work hours”, in addition to the “low cost of service termination” indicator in the 2022 Global Innovation Index report issued by the World Intellectual Property Organization (WIPO).
The UAE ranked second globally in five indicators within the “Global Competitiveness Yearbook 2023”, namely, “availability of qualified senior managers”, “employment rate”, “low unemployment”, “percentage of force migrant labor” and “percentage of labor force of the population”.