Dubai: Have you already subscribed to the unemployment insurance scheme that was launched in the UAE from 2023? The subscription process can be completed online and takes just a few minutes, and provides workers in the UAE’s private and federal government sector with financial support in case of job loss.
But once you have subscribed to the scheme, what happens if you decide to change your job? Do you need to subscribe to a fresh insurance policy? A Gulf News reader wrote in asking this question.
She said: “I have subscribed to the Involuntary Loss of Employment (ILOE) scheme and wanted to know what would happen if I change jobs now? Will I have to subscribe to the plan again? Or will the insurance policy still be valid? Also, how will changing jobs affect my eligibility to receive the benefits in case of job loss?
Gulf News raised the question with Rama Hussein Nawas, Corporate and Commercial associate & Anti Money Laundering Officer at The Legal Group Advocates and Legal Consultants.
Nawas spoke about ‘Cabinet Resolution No. 97 of 2022, regarding the mechanisms and controls for implementing the insurance system against unemployment’. The Resolution provides details of the conditions under which the employee is protected from income interruption in the event of loss of work.
She said: “The employee’s participation is considered a personal contribution regardless of the company. Subsequently, the insured employee records only their personal information on the ILOE Portal, like their Emirates ID, personal email address and phone number.
“The Insured is not required to submit any information about the company they work for except for the work permit number to identify information on the Insured at the Ministry of Human Resources and Emiratisation (MOHRE). The insurance amount is tied to the insured, not to the place of employment.”
Such a [job] change will not require the insured to cancel their current subscription and subscribe to a new insurance policy, so long as they adhere to the general conditions for subscription stipulated in the ministerial decision.
You do not need to subscribe to a new policy
Based on these conditions, Nawas said that if an employee changes their job, their insurance policy under ILOE would not be affected.
“Such a [job] change will not require the insured to cancel their current subscription and subscribe to a new insurance policy, so long as they adhere to the general conditions for subscription stipulated in the ministerial decision. However, for change in place of employment, the insured would be required to provide the Insurance Authority with the updated new permit card information.”
Nawas added that as a change in the place of employment does not affect the insurance policy of the employee, such changes should not affect the insured’s right to obtain the insurance amount as a consequence of his or her unemployment, as long as no fraud or manipulation has taken place.
Upgrade policy if needed
However, if your job change means that you move from Category A to Category B within the scheme, you would need pay the difference in the premium amounts, according to Nawas.
“The UAE Cabinet is expected to release further information in the coming days on the implementation procedures for the resolution,” she added.
Do you have any questions related to the topics covered in Living in UAE? Write to us at firstname.lastname@example.org