The following procedures shall be applied in the event that the employer fails to pay the basic subscription on time:

1. The fund manager shall, within thirty (30) days from the date of payment, send a written warning to the employer of the necessity of paying the basic subscription within a period not exceeding five (5) working days from the date of receiving the warning.

2. In the event that the basic subscription is not paid within (15) fifteen days from the date of sending the warning, the fund manager shall notify the Ministry.

3. After two (2) months have passed from the date in which the employer failed to pay, the Ministry shall stop issuing new work permits to the employer until all subscription amounts due therefrom are paid, or any other administrative measures shall be taken in accordance with its applicable regulations.

4. After (4) four months have passed from the date of failure to pay the subscription amounts, the Ministry shall impose an administrative fine on the employer in the amount of (1,000) thousand Dirhams per month for each beneficiary.

1. The Ministry and the Authority may take all necessary measures for the purposes of monitoring, supervising and inspecting the alternative scheme in accordance with the legislation in force in this regard.

2. Both the Ministry and the Authority may establish the controls, restrictions and procedures necessary to implement the provisions of this resolution.

3. The Ministry shall be responsible for receiving labour complaints related to the alternative scheme in accordance with the procedures determined thereby in this regard. It shall also be authorised to investigate any violations resulting from the inspection or included in the complaints received thereby.

4. Financial free zone authorities shall be responsible for supervising, controlling, and settling complaints related to the alternative scheme for the End of Service Gratuity Law applied under authority and scope of jurisdiction thereof.

5. The Authority shall be competent with receiving complaints regarding the performance of investment fund service providers in accordance with the relevant controls issued thereby.

1. The alternative scheme shall be considered a voluntary system for employers, provided that employers shall adhere to all provisions stipulated herein upon subscription to the alternative scheme.

2. The system shall be mandatory for workers who have been selected by their employer to participate in the alternative scheme.

3. The Authority shall be responsible for granting licences to Investment Fund Service Providers, in accordance with the standards and obligations approved thereby to carry out activities thereof.

4. The authorities regulating the activities of financial free zones within the State shall develop and approve the stipulations of the alternative scheme pertaining to the End of Service Gratuity Law, which applies to entities under their jurisdiction, in line with the prescribed criteria. Shall they intend to extend this service to entities outside jurisdiction thereof, they shall secure the approval of both the Ministry and the Authority.

5. All anti-money laundering provisions, procedures and requirements shall apply to the activities of the alternative scheme pertaining to the End of Service Gratuity Law.

6. The fund manager shall be responsible for taking the necessary measures to secure entitlements of the beneficiaries, in accordance with the mechanisms specified by the Authority.

7. Under any circumstances, basic subscription amount and the profits and returns generated therefrom in the alternative scheme may not be withdrawn before the end of the work relationship between the employer and the beneficiary. However, the employer shall have the right to recover the basic subscription amounts only if the work relationship ends before the lapse of one year from beginning thereof.

8. The basic subscription amounts paid shall not be included in a judicial enforcement, seizure, liquidation or bankruptcy procedures imposed on the employer.

9. In the event that the beneficiary moves from the current employer to another new employer, the new employer may replace the previous one in completing the payment of the basic subscriptions in the alternative scheme, in accordance with the provisions of this resolution.

10. The employer may change the fund manager and transfer all subscription amounts and returns to an alternative investment fund, based on reasons related to the level of service performance and what supports the interests of the beneficiaries, after obtaining the approval of the Ministry and the Authority. Neither the employers nor the beneficiaries shall not bear any cost for the transfers.

11. The Fund Manager may voluntarily accept any other subscriptions from the following categories in accordance with the provisions contained in the Fund offering document and any other controls established by the Ministry in coordination with the Authority and the concerned authorities:

1. Taking into account the provisions of Clause (3) of this Article, the beneficiary shall be entitled to all basic subscription amounts paid by the employer in the alternative scheme and any returns resulting therefrom during the subscription period, within a period not exceeding (14) fourteen days from the date of termination of the employment relationship with the employer or the successors of the beneficiary within a period not exceeding (10) ten working days from the date of death thereof.

2. The beneficiary or successors thereof may notify the Fund Manager in writing within the periods referred to in Clause (1) of this Article of their desire for the Fund to continue investing the funds owed thereto. The beneficiary may also withdraw the funds at any time without any restriction.

3. The employer may demand deduction of any amounts legally due thereto from the worker entitlements in the alternative scheme upon termination of the employment relationship between both parties, after the approval of the Ministry or in implementation of a judicial ruling in accordance with the relevant legislation in force.

1. The fund manager shall provide various investment options and make them available to the beneficiaries, provided that the investment options shall include the following:

1. The beneficiary may contribute a percentage of the total wage or contribute an additional amount (monthly or lump sum) in addition to the basic subscription amount, through any of the following two means:

1.The basic monthly subscription amount shall be calculated as follows:

The employer opting to subscribe in the alternative scheme shall adhere to the following:

1. Choose one of the licensed investment funds for the purposes of implementing the alternative scheme, through contracting with the Fund Manager;

2. Choose the categories of workers and professional levels thereof that he would like to include in the alternative scheme;

3. Stop working with the current end of service gratuity system for workers who have been chosen to participate in the alternative scheme, provided that the employer shall be committed to calculate the gratuity due to the beneficiary before implementing the alternative scheme in accordance with the provisions of the decree law. The employer shall pay such gratuity upon termination of the work relationship, calculated on the value of the beneficiary basic wage at the time of participation in the alternative scheme;

4. Calculate and pay the basic subscription amount in accordance with the provisions of this resolution without deducting it from the beneficiary wage. Such amounts shall not be refundable to the employer;

5. Provide the investment fund service providers with all documents and information related to the beneficiaries upon request; and

6. The Minister shall issue a resolution specifying the cases in which the employer may subscribe to the alternative scheme.

Employers wishing to subscribe to the alternative scheme shall submit a subscription application to the Ministry in accordance with the procedures specified by the Ministry in this regard.

The provisions of this resolution shall apply voluntarily to employers in private sector establishments in the State, including free zones, and workers in those establishments.