Who is not eligible for ILOE and when compensation may not apply

Dubai: Losing a job can be stressful, but the UAE’s ILOE (Involuntary Loss of Employment Insurance Scheme) unemployment insurance scheme is designed to provide temporary financial support for eligible employees. However, not everyone can benefit, and there are specific conditions that determine whether you’re entitled to compensation.

Who cannot subscribe to ILOE

The following groups are excluded from the unemployment insurance scheme:

1. Investors and self-employed individuals

2. Domestic workers

3. Contractual or temporary workers

4. Juveniles under the age of 18

5. Pension-receiving retirees who take a new job

Situations where compensation may not be granted

Even if you are subscribed to ILOE, you may not receive compensation if:

• Your unemployment is due to resignation. The termination must be officially confirmed by your employer, and your MOHRE work permit cancellation should state “termination.”

• You were dismissed for disciplinary reasons, according to UAE labour laws.

• You have an active abscondment complaint.

• The claim is made fraudulently or the company you worked for is fictitious.

• Job loss occurred due to non-peaceful labour strikes or stoppages, regardless of any resulting damage.

Eligibility requirements for making an ILOE claim

To claim ILOE benefits, employees must meet the following conditions:

• Subscription period: You must have been subscribed to the scheme for at least 12 consecutive months.

• Premium payments: All insurance premiums must be fully paid as per the schedule.

• Claim timing: Submit your claim within 30 days from either the termination of your employment or the settlement of any related labour complaint adjudicated by the court.

• Legal residency: You must be legally present in the UAE at the time of your claim.