Stock office staff in Dubai
Employees can subscribe for the Involuntary Loss of Employment (ILOE) online through the ILOE website - and the ‘ILOE’ app. Picture used for illustrative purposes. Image Credit: Clint Egbert/Gulf News

Dubai: Employees in the UAE only have till October 1 to sign up for the mandatory Unemployment Insurance Scheme, and failing to subscribe to the plan can lead to a Dh400 fine.

The scheme, which is called Involuntary Loss of Employment (ILOE), came into force on January 1, 2023. Employees can subscribe for it online through the ILOE website - and the ‘ILOE’ app. To find out how you can subscribe to the scheme, click here.

According to the Ministry of Human Resources and Emiratisation (MOHRE), the scheme aims to protect employees by offering them a three-month cash compensation, if they fulfil certain eligibility criteria for the cash compensation, the details for which are listed below.

If you have still not signed up, it is important to understand whether you are eligible and when you are entitled to claim the cash compensation.

Who is eligible to subscribe to the Unemployment Insurance Scheme in the UAE?

The Unemployment Insurance Scheme applies to:

  • Expats and Emiratis working full-time in the UAE's federal and private sectors.

Recently, Dubai Insurance, the company that manages the ILOE Insurance Pool, announced that Freezone employees and semi-government entities can now avail of the insurance scheme, too. Click here to find out more and how to sign up for the ILOE scheme. 

Most employees in the UAE’s workforce are eligible to enrol in the Unemployment Insurance Scheme. However, to receive the compensation, you must fulfill the following main requirements:

- You must complete a minimum of 12 consecutive months in your previous job, calculated from the day you subscribed to the insurance scheme.
- You must not be dismissed for disciplinary reasons or resign.

Five categories exempt from the Unemployment Insurance Scheme

According to Federal Decree-Law No. 13 of 2022 concerning Unemployment Insurance Scheme, there are five groups that are not eligible to subscribe to the scheme:

  1. Investors (owners of the establishments in which they work)
  2. Domestic helpers
  3. Temporary-contract workers
  4. Juveniles under the age of 18
  5. Retirees who receive a retirement pension and have joined a new job.

When are you not entitled to compensation?

According to MOHRE, there will be no compensation for workers:

  • Dismissed for a disciplinary reason.
  • Who have resigned from their job.
  • Who have left the UAE.
  • Who have joined a new job.


When do you receive the compensation?

Article 9 of Cabinet Resolution No. 97 of 2022, states that a claim must be submitted within 30 days following the termination of the employment relationship, or when the court rules on the labour complaint.

Article 12 of the same resolution states that once the worker has submitted the claim, the service providers licenced by the UAE’s Central Bank must make the payment within two weeks of receiving the claim.

Do you have any questions related to the topics covered in Living in UAE? Write to us at