Why Expats Are Unlikely to Lose Out Under the UAE’s New Employment Support Programme
With recent reforms, the UAE has introduced a broad employment support programme designed to stabilize the labour market and provide greater security for both nationals and expatriates. Amid concerns that many expats might be disadvantaged under new rules, there are several compelling reasons why this fear may be overstated.
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🔍 What’s Changing?
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The UAE has rolled out a Voluntary Alternative End-of-Service Benefits Savings Scheme. Under this, private and free zone employers who opt in contribute monthly to a fund instead of offering a traditional lump-sum gratuity at the end of service.
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A new unemployment insurance (job-loss insurance) scheme is also being discussed/planned which would help provide financial support for those who lose their jobs.
💡 Why Expats May Benefit or Not Be Disadvantaged
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Eligibility & Inclusiveness
The end-of-service savings scheme has no minimum salary requirement and covers private and free-zone sector workers, which includes many expats. So low-wage or mid-wage expats stand to gain because they wouldn’t be excluded by a salary floor. -
Flexibility & Investment Growth
Under the savings scheme, the contributions are invested, which can help mitigate the effects of inflation and preserve value, something lump-sum gratuities sometimes struggle with. Over time, the investment returns may offset or even surpass what some workers receive under the older gratuity model depending on economic conditions. -
Protection During Unemployment
The proposed unemployment or job-loss insurance is designed to cover both citizens and expats, offering a safety net during periods of job transition. Though certain categories may be exempt, the fact that expats are included prevents full exposure to income shocks from sudden job loss. -
Regulatory Oversight & Transparency
These changes are introduced through formal ministries (MOHRE etc.), which means there are systems in place for compliance, oversight, and worker protection. This reduces the risk that expats are left unprotected. -
Optional vs Mandatory
The new savings scheme is voluntary for employers, which gives companies and employees time to adapt. This reduces sudden disruptions. Expats in many cases can choose—and benefit—from whichever scheme their employer adopts.
⚠️ Where Expats Must Be Cautious
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Investment fund performance is uncertain; market fluctuations can affect returns.
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If employers do not opt into the savings scheme, expats may continue under the older gratuity system (which might be less favourable over time).
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Some benefits (like unemployment insurance) may have eligibility rules and conditions that exclude certain groups (temporary contracts, etc.).
🔍 Search Description (Meta Description)
UAE’s new employment reforms—including a savings scheme and job-loss support—ensure expats aren’t left behind. Get the facts on eligibility, benefits, and what this means for foreign workers.
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