On Thursday, it was announced that two companies, Lunate and Daman Investments, have been accredited by the Ministry of Human Resources and Emiratisation and the Securities and Commodities Authority to operate under an alternative end-of-service benefits scheme. These are the first companies to be accredited, launching two savings funds that safeguard capital and adhere to Islamic Sharia. Additionally, they are authorized to enter into agreements with employers and accept voluntary subscriptions, all while adhering to a stringent set of standards and obligations.
The alternative end-of-service scheme was introduced in November of the previous year, aimed at providing employees in public, private, and free zone companies with an alternative to the traditional gratuity payment system. Employers are given the choice to adopt this scheme. The Savings Scheme is designed to invest the financial allocations intended for end-of-service benefits of private sector workers into investment funds, with the goal of enhancing workers' savings and enabling them to reap the benefits of the returns on their end-of-service investments.
