UAE job loss insurance: Subscribe to the scheme as early as possible; here’s why

UAE job loss insurance: Subscribe to the scheme as early as possible; here’s why

Employees in the UAE should subscribe to the job loss insurance scheme as early as possible to properly benefit from the scheme and file claims in time.

The UAE introduced the Involuntary Loss of Employment (ILOE) scheme on January 1, 2023, to support employees who lost their job for reasons other than disciplinary action or resignation until they find a new job.

It's mandatory for employees working in for private sector and federal government employees to subscribe to the scheme.

Employees in the UAE can subscribe to the insurance scheme for up to one or two years. Failure to register in the unemployment insurance scheme by June 30, 2023, will result in a penalty of Dh400 for the employee.

"People should join as soon as possible because there is a condition whereby employees will have to subscribe for at least 12 consecutive months in order to be eligible to submit a claim. This means cash benefit shall be provided for a maximum of three months to the employees after completing 12 months," said Dana Kansou, manager, strategic partnerships at Dubai Insurance, which is spearheading the campaign on behalf of the ILOE pool in the country.

Citing an example, she said if an employee loses a