UAE: Many firms register their employees in job loss insurance scheme

UAE: Many firms register their employees in job loss insurance scheme

Failing to subscribe to the mandatory policy by June 30 will result in Dh400 penalty for the workers

Published: Thu 2 Feb 2023, 6:00 AM

Many companies have registered their employees for the job loss insurance scheme which came into effect on January 1, 2023. The UAE government made it mandatory for the federal government and private sector employees to subscribe to the Involuntary Loss of Employment (ILOE) insurance scheme. Failing to subscribe by June 30 will result in a Dh400 penalty for the workers.

“A good number of companies have registered their employees for the ILOE scheme. In addition, companies are responsible for creating awareness among employees about the ILOE scheme,” said Dana Kansou, manager, strategic partnerships at Dubai Insurance, which is spearheading the campaign on behalf of the ILOE pool in the country.

She advised companies to send reminders to employees time and again so that they subscribe in time and don’t incur fines.

Kansou suggested that since companies are offering other incentives such as life and medical insurance, they can also offer this as an incentive to their employees. However, she stressed that it is mandatory for employees to subscribe and not employers.

As Khaleej Times reported earlier, employers in the UAE can