Mandatory UAE Unemployment Insurance Scheme: 10 conditions for claiming compensation

Dubai: Most employees in the UAE’s workforce are now eligible to enrol in the unemployment insurance scheme, but to claim the cash benefits from the policy, you need to fulfil 10 specific conditions.

These criteria are outlined in Article 5 of the Federal Decree-Law No. 13 of 2022 concerning unemployment insurance scheme and Article 9 of a cabinet resolution that was issued after the law was passed – Cabinet Resolution No. 97 of 2022.

It is extremely important to ensure that you fulfil all these conditions, so that you can receive 60 per cent of your basic salary for three months, if you lose your job due to reasons beyond your control.

Here are the conditions you need to fulfil, as per the Articles mentioned above:

1. The period of subscription in the unemployment insurance scheme should not be less than 12 consecutive months.

2. You must ensure you pay all insurance premiums according to the prescribed frequency.

3. You must provide evidence of unemployment due to reasons other than resignation.

4. You should not have been dismissed from the job for disciplinary reasons according to the applicable laws regulating labour relations in the private sector and human resources in the federal government.

5. A claim must be submitted within 30 days following the termination of the employment relationship, or when the court rules on the labour complaint.

6. You should not be the subject of an existing absconding report.

7. In order to obtain compensation, the claim should not be fraudulent or deceitful. Similarly, the establishment where the employee works should not be fictitious.

8. The compensation pay out shall cease if you are hired by another employer.

9. Loss of employment may not be attributed to strikes or other non-peaceful protests, regardless of the extent of damage caused.

10. It is necessary for the insured to have a legal residence in the country.

Claims to be honoured in two weeks

Once you have submitted the claim, and are entitled to compensation, Article 12 states that service providers licenced by the UAE’s Central Bank to provide the insurance policy, are required to make the payment within two weeks of receiving the claim.

For a detailed guide on the Involuntary Loss of Employment (ILOE) and the cost of the insurance subscription, click here and to find out how you can sign up for ILOE, read here.