UAE reveals Mandatory Job Loss Insurance Deadline.. Avoid fines

Employees working within the private sector, federal government agencies, and free zones in the United Arab Emirates (UAE) must have a solid understanding of the essential aspects of the mandated job loss insurance. The deadline to enroll in the UAE's Involuntary Loss of Employment (ILOE) program has been extended, but it's rapidly approaching in just a few weeks. Failing to subscribe to this program before the October 1st deadline will result in fines, underscoring the urgency of comprehending the intricacies and responsibilities associated with this scheme.

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Compulsory Enrollment and Consequences

Participation in the ILOE program is obligatory, and individuals who do not comply will be subject to penalties. These penalties consist of a Dh400 fine for those who miss the October 1st deadline and Dh200 for individuals who subscribe but do not pay premiums for more than three months beyond the due date. Failure to settle these fines can have repercussions on employment prospects, potentially affecting eligibility for a new work permit until all outstanding dues are settled.

Exemptions and Enrollment Options

Certain groups, including investors, domestic helpers, temporary contract workers, minors under 18, and retirees with pension entitlements, are exempt from this initiative. To enroll, employees have various avenues at their disposal. These include the ILOE website and app, Al Ansari Exchange, Tawjeeh and Tasheel business centers, Etisalat (coming soon), kiosks (upay and MBMEPay), and Botim (coming soon).

Program Mechanics and Eligibility Criteria

Employees can register for the ILOE program at an affordable premium, with payouts only becoming available after a minimum 12-month subscription period. The program offers two plans: Category A, designed for those earning a base salary below Dh16,000, and Category B, tailored for those with a base salary of Dh16,000 or higher.

However, Each plan has its associated costs and benefits. Benefits are provided for a maximum duration of three months, terminating upon the claimant's reemployment or departure from the United Arab Emirates.

Several conditions must be met to qualify for compensation, including timely premium payments, no resignations or dismissals due to disciplinary reasons, and the submission of a claim within 30 days of termination or labor dispute resolution. Existing absconding complaints can also impact the eligibility to make claims.

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