The UAE has 3 new laws in place starting January 2023

As the UAE ushered in the new year, many new developments already seem to be taking place in the country. The country has launched several initiatives, including three new laws in the new year, according to a report by the Khaleej Times. These include the unemployment insurance scheme, Emiratisation rule, and ban on single-use plastics in Ajman and Umm Al Quwain.

Unemployement Insurance Scheme

The scheme is a form of social security that will be provided to Emiratis and residents working in the federal and private sectors. With this, if, upon termination by their employers, they lose their jobs, they will be provided financial support for up to three months. Subscription to the scheme began on January 1, 2023.

The fees for the subscription depends on the employee’s basic salary. Workers with a basic salary of AED 16,000 or less have to pay a monthly insurance premium of AED 5 (AED 60 annually). Their compensation must not exceed a monthly amount of AED 10,000.

Further, workers with a basic salary exceeding AED 16,000 will have to pay AED 10 per month (AED 120 annually). Their compensation must not exceed AED 20,000 monthly.

According to a report by Khaleej Times, the insurance fees can be paid either on a monthly basis, quarterly, once every six months, or annually.

Emiratisation Rule

According to this, companies with over 50 employees must achieve an Emiratisation rate of 2% for skilled jobs to avoid penalties. Those that are non-compliant companies will face financial penalties. These penalties will be collected from January 2023.

A monthly fine of AED 6,000 will be collected for un-appointed UAE nationals, and it must be paid in a single installment.

If an Emirati resigns from a private firm, the firm must get an Emirati replacement to meet the Emiratisation target, added the report. The firms that achieve the targets will receive incentives such as discounts of up to 80% on MoHRE fees.

Ban on Single-use plastics

Ajman and Umm Al Quwain have banned single-use plastics. The ban was imposed on Sunday, January 1, 2023.

The outlets are required to charge shoppers 25 fils per plastic bag from now on.

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