The Ministry of Human Resources and Emiratisation has confirmed that the minimum period for participation in the optional alternative system for the end-of-service reward system, the “savings system”, is one year, and it is not permissible to withdraw from the system before the end of this period.
Except after obtaining the Ministry’s approval and in one of the exceptional cases, which is submitting a request to cancel the facility, acquire the facility, transfer its ownership to new owners, or prove bankruptcy or insolvency in accordance with the laws regulating that. When the establishment withdraws from the alternative system according to any of the specified cases, it is bound by all the necessary conditions for withdrawal contained in the Council of Ministers’ decision regarding the optional alternative system.
fines
The Ministry indicated that, according to the decision of the Council of Ministers, there are a number of conditions for the employer to withdraw from the alternative system, which are that the period of participation in the system should not be less than one year.
Obtaining the Ministry’s approval in exceptional cases, ensuring that there are no outstanding administrative fines or existing labor disputes pending settlement by the employer, and submitting the credit report to the Ministry to ensure sufficient financial solvency to pay the beneficiaries’ end-of-service benefits, in addition to not affecting the beneficiary’s rights and entitlements.
According to the text of the decision, the employer’s withdrawal from the alternative system will result in him not being able to recover the subscription amounts, and the beneficiary has the right to withdraw his dues after the end of the work relationship, or keep them for the continuity of investment, without paying any additional contributions, and to refer to the mechanism for calculating the end-of-service reward in accordance with the decree law. And its executive regulations, for the period following withdrawal from the alternative system.
written warning
The Cabinet decision specified a set of procedures to be applied in the event of non-payment of the basic subscription, which is for the fund manager, within 30 days from the date of payment, to send a written warning to the employer of the necessity of paying the basic subscription within a period not exceeding 5 working days from the date of receiving the warning. .
If the basic subscription is paid within 15 days from the date of sending the warning, the fund manager will notify the Ministry, and after two months have passed from the date of the employer’s failure to pay, the Ministry will stop issuing new work permits to the employer, provided that all subscription amounts due from him are paid. Or take any other administrative measures in accordance with its applicable regulations.
After 4 months have passed from the date of failure to pay the subscription amounts, the Ministry imposes an administrative fine on the employer of 1,000 dirhams per month for each beneficiary.
2023-11-07 22:04:18
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