Private sector and federal government employees have until June 30 to enrol in the Involuntary Loss of Employment (ILOE) insurance, despite the fact that enrollment in the UAE’s new unemployment insurance programme is required.
But it is better to avoid waiting until the last minute because the earlier you subscribe, the sooner you will be eligible for the payout in the event that you lose your work. Here are six things to remember with ILOE.
1. You need to be subscribed for one year to benefit
According to the Ministry of Human Resources and Emiratization (MOHRE), you must have worked at your former employer for a minimum of 12 consecutive months, counting from the day you signed up for the insurance plan, in order to be eligible for compensation under the insurance plan. Therefore, the sooner you enrol in insurance, the sooner you’ll qualify for a payout.
2. You will be able to get 60 per cent of your basic salary for three months
According to details released by MOHRE, if an employee qualifies for compensation under the new programme, he or she will receive 60% of their basic salary.
Your basic pay is different from your total pay, which may be paid once a month or at a frequency decided upon by you and your employer.
You should also be aware that this payout has a maximum amount. According to the rules, employees who are paid a base salary of up to Dh16,000 and come under Category A will receive 60% of that amount, up to a maximum of Dh10,000.
3. It is not applicable if you resign
Another important thing to remember is that this insurance was put in place to give social support to workers who might lose their jobs for causes beyond their control. Workers won’t receive any compensation, according to MOHRE:
- Dismissed for a disciplinary reason.
- Who have resigned from their job.
- Who have left the UAE.
- Who have joined a new job.
4. If you find a new job within three months, you will not continue to receive the payout
Article 5(4) of Federal Decree-Law No. 13 of 2022 Concerning Unemployment Insurance Scheme, states: “During the period of compensation entitlement, the payment of compensation shall cease if a worker or employee is hired by another employer.”
5. It is applicable only if you are staying in the UAE
There are a few requirements that must be met in order for the insured person to make use of the insurance coverage, according to Article 9 of Cabinet Resolution No. 97 of 2022 Concerning the Procedures and Controls for Implementing the Unemployment Insurance Scheme. Clause 9 of the Article states: “It is necessary for the insured to have a legal residence in the country.”
6. Your claim has to be honoured in two weeks
Article 13 of the same Cabinet Resolution states: “In the event that the insured is entitled to compensation, the service provider is required to make payment within two weeks of receiving the claim that is consistent with the established eligibility criteria, provided the service provider transfers the compensation to the insured’s account in the manner determined by the insured ….”