UAE jobs loss insurance: Common issues employees face while subscribing; here’s how to resolve them

UAE jobs loss insurance: Common issues employees face while subscribing; here’s how to resolve them

Employees in the UAE should subscribe to the job loss insurance scheme as early as possible because last-minute delays due to some technical issues could result in penalties.

The UAE implemented the mandatory Involuntary Loss of Employment Scheme (ILOE) on January 1, 2023, to provide security for employees who lost their jobs due to reasons other than disciplinary action or resignation they find a new job.

It’s mandatory for employees working in the private sector, the federal government, and free zones to subscribe before June 30 to avoid a Dh400 penalty. An additional Dh200 penalty will be imposed for failing to pay premiums.

However, it’s not mandatory for companies to purchase job loss insurance for their employees, but the firms have been asked to encourage their employees to subscribe to it.

The human resources departments of local firms say that employees are facing a couple of issues when subscribing to the insurance scheme which results in a short delay in completing the transactions.

An HR executive said employees contact them when they cannot subscribe because passport or work permit details are not updated in the government system.

“When you’re applying for job loss insurance, and your passport details are incorrect in the current contract, it will