On Thursday, it was announced that two companies had received accreditation to operate under an alternative end-of-service benefits scheme from the Securities and Commodities Authority and the Ministry of Human Resources and Emiratization.
The first two accredited businesses to introduce two savings funds that adhere to Islamic Sharia and safeguard capital are Lunate and Daman Investments. In compliance with a stringent set of guidelines and requirements, they will also be permitted to sign contracts with employers and accept voluntary subscriptions.
The introduction of the alternative end-of-service scheme in November last year provided an alternative to the current practice of gratuity payments to employees of public, private, and free zone companies. Employers can select the plan.
The Savings Scheme aims to increase employees’ savings and allow them to profit from returns on their end-of-service investments by allocating funds for private sector employees’ end-of-service benefits to investment funds.
Additionally, they will have the authority to consent to standards and obligations, sign contracts with employers, and accept voluntary subscriptions.
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