Job loss is a situation that most often expats don't consider when they plan their move abroad. You should keep in mind that not all countries have similar unemployment insurance policies. The Covid pandemic impacted everyone's lives, and many expatriates were suddenly deprived of employment. As the United Arab Emirates introduces new unemployment insurance to retain foreign talent, let's take a look at how other countries tackle the unemployment of expats.
The United Arab Emirates launches its unemployment insurance for expats
The United Arab Emirates is constantly reforming its laws to attract and retain global talent, as evidenced by the introduction of unemployment insurance. This was announced on Monday, May 9, by the Cabinet. Foreign professionals who lose their jobs will thus be eligible for an allowance for a limited period of time. The Cabinet also announced the introduction of a job seeker visa. In general, Gulf countries have rather severe regulations for foreigners who lose their jobs — they are to leave the country. But the United Arab Emirates seems determined to make a change. Not much information regarding this law has been made public, so it's still unclear whether this insurance will apply to all categories of workers. Another question is whether the process will be similar for locals and foreigners. How will the compensation be calculated? Will there be a minimum working time requirement, and if so, how long will it be? Still, it seems like the United Arab Emirates has set its foot deep in the global labor market.
Which countries already provide unemployment benefits to expats?
Many other countries already provide unemployment insurance for foreigners. However, there are significant differences between European and non-European countries. European expats can usually remain affiliated with their country's social protection system (considering the type of contract they are bound by). Non-European expats, on the other hand, have to check whether their home country has signed any bilateral agreement with their host country.
In France, Pôle Emploi provides support to job seekers, whether they are French or expats. This center also offers an unemployment benefit, called "Allocation de retour à l'emploi" (ARE). However, expats must check whether their status (residence permit) makes them eligible for registration with Pôle Emploi. European nationals, however, do not need a residence permit to register — they can simply use their identity card. Expats coming from non-European countries must have a valid residence permit (temporary or long-term residence permit, "talent passport", temporary residence permit, etc.) issued by the French authorities. They also have to prove that they have worked in France for at least 6 months during the last 2 years to qualify for the ARE. As regards the period of time the allocation is valid for, it varies: approximately 2 years for those aged under 50, 3 years for those over 50-54, and more than 3 years for those aged over 55.
Switzerland also provides expats with insurance in case of job loss. In principle, these workers are entitled to the same rights and duties (particularly with regard to the contribution period) as Swiss workers. The Regional Placement Office (ORP) manages requests from job seekers. Expats, therefore, have to register with the closest ORP to their residence. They will have to prove their regular residence in Switzerland and that they have worked and contributed to unemployment insurance for at least 1 year during the last 2 years. They also have to prove that they are active job seekers by providing supporting documents (list of companies contacted, dates, interviews, emails sent, etc.). Cross-border workers can also be eligible for insurance under certain conditions in their country of origin or in Switzerland.
Canada (via Service Canada), New Zealand (Work and Income) and Austria (Arbeitsmarktservice Österreich), also have unemployment benefits intended for expats. In the United States, each state has its own unemployment agency, so conditions might vary.
What should expats do in case of job loss?
At a time when crises follow one another, the fear of losing jobs is ever increasing. Things can be even more complicated for expatriates who have to deal with a set of administrative formalities. If this is the case for you, the first thing to do is to take out some time to digest the news and assess the situation: has the employer provided all the end-of-contract documents? What were the exact terms of the contract? Indeed, your situation as an expat job seeker depends on your previous contract. The place of work (whether in Europe or elsewhere) and whether there is any bilateral agreement with your home country are other important things to consider.
If you're keen on staying in your host country, make sure to contact the employment service to check whether you're eligible for compensation. You will be considered a local resident and will therefore benefit from the same rights as a local. But make sure you're aware of the whole procedure, especially concerning the amount and the duration of benefits. Obviously, you need to have a good command of the local language.
If you prefer to return to your home country, contact the employment service there to claim (or not) unemployment benefits, depending on their situation. If you are eligible, you will then have to register as a jobseeker and follow the course of any citizen (transfer your rights from the country in which you have been working). If you are not entitled to unemployment benefits in your home country, you can still apply for a transfer of benefits from your last host country either to your home country or any other country you might want to live in. However, the transfer of rights is only recognized in EU countries.
Conclusion
Expats rarely check unemployment clauses when planning their move abroad and are often confronted with a dilemma in case of job loss. However, this remains an important issue that needs not be neglected. Conditions relating to unemployment insurance, including the duration of prior contribution, how the allowance is calculated, eligibility, validity period, proof needed, etc., need proper planning, and these might define the duration and purpose of your stay abroad.
