UAE firms can pay for job loss insurance on behalf of employees

UAE firms can pay for job loss insurance on behalf of employees

Employers in the UAE can buy the insurance against job loss on behalf of their staff, a top official has said. In an exclusive interview with Khaleej Times, Abdellatif Abuqurah, CEO, Dubai Insurance Company, said this is an optional feature.

“We are allowing the employers to buy the policy on behalf of their employees if they wish to. And I have to stress on ‘if they wish to’. The employer can buy the policy and deduct the value of the premium from their employees’ salaries, or can decide to pay it on their behalf,” Abuqurah said.

Dubai Insurance has enrolled its employees in the scheme and will be footing the costs of the premiums on their behalf, the CEO added.

Dubai Insurance Company is the representative of the insurance pool that includes nine companies to offer the Involuntary Loss of Employment (ILOE) scheme. The law went into effect at the beginning of the year. Employees will have to subscribe to one of the two plans before June 30, 2023, failing which they could be fined Dh400.

Can exempted categories sign up?

Domestic workers and employees working in the freezones are currently among the categories of employees exempted from getting the scheme.

When asked if they can