The Involuntary Loss of Employment (ILOE) scheme provides security for employees who lost their jobs due to reasons other than disciplinary action or resignation until they find a new job. Picture used for illustrative purposes. Image Credit: Shutterstock

Dubai: The deadline for signing up for the UAE’s Unemployment Insurance has passed, and workers who failed to subscribe to the job loss scheme face a Dh400 fine, according to the Ministry of Human Resources and Emiratisation (MOHRE).

If you have, however, subscribed to the insurance scheme, which is officially referred to as the Involuntary Loss of Employment (ILOE), you can claim compensation if you fulfil certain requirements.

What is the compensation you can receive under the scheme?
According to MOHRE, workers who are subscribed to the Unemployment Insurance Scheme will receive 60 per cent of their basic salary for three months in the event of losing their job for reasons beyond their control. However, to be eligible for the compensation, they need to fulfil certain conditions.

9 conditions for claiming compensation

To be eligible to claim the compensation, there are nine specific criteria listed in Article 9 of Cabinet Resolution No. 97 of 2022, which was issued after the law was passed. For example, you need to be subscribed to the scheme for at least 12 consecutive months and you should have ensured payment of all the insurance premiums.

Here is the detailed list of nine conditions, as stipulated in Article 9 of the Cabinet Resolution:

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

2. The insured must be committed to paying all insurance premiums according to the prescribed frequency.

3. Providing evidence of unemployment due to reasons other than resignation of the insured.

4. The insured may not have been dismissed from his or her 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. The insured may 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. Loss of employment may not be attributed to strikes or other non-peaceful protests, regardless of the extent of damage caused.

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

When can I claim compensation?
According to Article 9 of Cabinet Resolution No. 97 of 2022 - “a claim must be submitted within 30 days following the termination of the employment relationship, or when the court rules on the labour complaint.”

When can I receive the cash compensation?

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