UAE Unemployment Insurance: 10 Criteria For Employees!

Being unemployed is one of the main fears of adult life and that too when you lose your job without any prior reason. The UAE administration has taken note of this and has started a new program known as the Involuntary Loss of Employment (ILOE) Insurance Scheme under which the unemployed individual will be provided financial security in the event of a sudden job loss.

Mandatory Scheme

The scheme would start from the 1st of January next year with both expats and the citizens of UAE eligible for the insurance. The financial aid would be provided for a period of three months and there are certain criteria that need to be fulfilled in order to be eligible for his insurance.

It would be a subscription-based model that will require the insured individual to deposit a fixed amount into the scheme to reap its benefits.  

These are some of the conditions that need to be met by the insured individual: 

1. A minimum period of 12 consecutive months must be completed for being eligible for the insurance.
2. There should not be any interruptions in the premium payment for three consecutive months. 
3. The premiums should also be paid under the stipulated time by the insurer. 
4. The unemployed individual should also be able to prove that the loss of their job was not caused as part of any disciplinary action against them.
5. The individual must prove that the loss of employment was not part of a purposeful resignation. 
6. The individual must apply for the insurance within 30 days of the loss of their job or the labor complaint settlement that has been referred to the judiciary. 
7. There should not be any complaint against the individual in regard to his or her absence from work. 
8. The loss of a job must not be a result of any sort of disciplinary action taken against the person as part of any non-peaceful labor strikes, protests, etc.   
9. The Individual who applied for the insurance shall not be eligible if there has been an instance of fraud or deceit as part of the claim. The same shall apply if the company under which they have applied for insurance turns out to be a fictitious one. 
10.  The insured person must be legally present in the UAE when applying for insurance.

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The person who applied for the insurance must not have lost the job because of the following conditions: 

1. Because of war, riot, insurrection, armed rebellion, military coup, invasion, civil war, the act of a foreign enemy, revolution, or other hostilities. 
2. Because of a nuclear event, pollutant discharge, radioactive exposure, toxicity, explosion, or any such effect of explosive nuclear equipment or a part of it. 
3. Because of a direct or indirect result of biological or chemical pollution that contributed to terrorism.
4. Because of the direct interference of the UAE administration in the expropriation or nationalization of the employer’s facility and if their assets have been confiscated leading to the insolvency of the firm.       
5. Because of the occurrence of a force majeure (unforeseen circumstances that don’t allow a person to fulfill a contract) that is in accordance with the Civil Transactions Law of the United Arab Emirates No.(5) of 1985. 

Some of the features of the Involuntary Loss of Employment scheme are as follows:  

1. The insurance amount is calculated at 60% of the average basic salary given over the last 6 months prior to the loss of a job. 
2. The scheme is split into two categories with Category A getting a maximum claim benefit of 10,000 AED per month and category B with a maximum claim of 20,000 AED per month. 
3. The total number of insurance claim benefits won’t be more than 12 monthly benefits which are calculated in the entire work-life period of the individual in the UAE. This won’t change according to the number of claims submitted. 

This scheme is provisioned under the Federal Decree -Law No. (13) of 2022 would apply to the employees under both the private and public sectors. The ILOE aims to provide a decent quality of life for workers in the UAE during the phase of unemployment and within the average time period of getting an alternative employment opportunity. Category A of the ILOE is meant for employees who have a basic salary equal to or below 16,000 AED and category B is meant for employees earning above 16,000 AED.

The minimum premium amount fixed for Category A is 5 AED per month and for the category, B is 10 AED per month. The payment options have also been divided into monthly, quarterly, semi-annual, and annual. Multiple subscription channels will also be made available like through the official website and app, exchange centers, bank apps, kiosks, sms service, telecommunications bills, and business centers. For more information and details, you can visit the official website www.iloe.ae, send an email to [email protected] or make a call at 600599555.