Dubai: If you just found out that you have been let go from your company, one of the first concerns you may have is how you are going to manage financially until you get another job.
In the UAE, you can get a portion of your salary paid to you every month, for three months, as long as you have subscribed to the job loss insurance scheme or ILOE.
Here’s how you can benefit from this provision.
Subscribe to the scheme as soon as you get a new job
One of the first things you should do when you get your work permit is to subscribe to the Involuntary Loss of Employment (ILOE) scheme. Subscribing to the scheme costs Dh60 per year (if your basic salary is Dh16,000 or less) and Dh120 per year (if your basic salary is over Dh16,000).
You can subscribe to the scheme via SMS, through the ILOE website or even your bank’s app.
Subscribing to the scheme right after you get your job can be a great safety net to help you in situations where you may lose your job for reasons beyond your control. Just make sure that if you choose any payment option except the annual payment option (for example monthly payments), you make all your payments on time.
I got fired. How do I claim my benefits?
To be able to claim the ILOE payout, you should submit your claim within 30 days of the work permit being cancelled. You can submit the claim online through iloe.ae by using the ‘Submit your claim’ option. You can receive the payout through your bank account or through any of the registered money exchange houses.
How much money will I get?
The payout will be 60 per cent of your average basic salary over the most recent six months prior to the involuntary loss of employment.
Is it possible that I am not eligible for the payout?
While the ILOE scheme is a great way to provide yourself with financial stability during job loss, there are certain criteria that you need to meet to be eligible for the payout. For example, it does not cover you if you resigned from your job, it is an insurance cover only in cases where the job loss was for reasons beyond your control. Similarly, you would not be eligible to receive the payout in some other situations, like:
- if you were fired because of disciplinary reasons.
- if you have an absconding case against you.
- if you were not subscribed to the scheme for 12 consecutive months prior to losing your job.
- if you no longer live in the UAE.
To better understand all the criteria that you need to meet, read our detailed guide here.
