The majority of United Arab Emirates (UAE) workers are eligible to enroll in the recently launched job loss insurance program called Involuntary Loss of Employment (ILOE). However, to receive cash benefits, laid-off workers must meet 10 conditions.
These requirements are mentioned in Article 5 of Federal Decree-Law Number 13 of 2022 regarding the unemployment insurance scheme, and Article 9 of a cabinet resolution that was passed the law came into effect.
It is mandatory for the workers to meet the below-mentioned conditions in order to receive 60% of their basic salary for the next three months as compensation for losing their jobs.
- Applicants of the insurance scheme will be eligible for compensation after completing 12 consecutive months as a subscriber.
- Employees must pay their amount as per the prescribed frequency (monthly or yearly).
- Workers must show proof of unemployment with reasons except for voluntary resignation.
- Workers mustn’t have been dismissed from their jobs on account of disciplinary reasons.
- Workers must file a claim within 30 days of being unemployed.
- Workers mustn’t be named in the list of absconders.
- To be eligible for compensation, the claim mustn’t be fake and the company, where the employee worked, mustn’t be fictitious.
- The compensation will be stopped if the worker gets employed within three months.
- Strikes or other non-peaceful protests may not cause a loss of employment, regardless of the extent of the damage.
- The subscribers of the insurance must be residing in the United Arab Emirates (UAE) legally.