Involuntary Loss of Employment by Dubai Insurance
The ILOE – Dubai Insurance website provides information about the Involuntary Loss of Employment scheme, eligibility criteria, compensation benefits, plans, subscription channels, payment options, and contact details. Eligible employees can receive a monthly cash benefit based on their average basic salary before the loss of employment, with a maximum claim duration of 3 months. Various subscription channels are available, and users can access additional information through downloadable materials.
- Involuntary Loss of Employment (ILOE) scheme implemented as per Federal Decree Law No. 13 of 2022
- Provides security for employees who lost their jobs due to reasons other than disciplinary action or resignation until they find a new job
- Eligible employees receive a monthly cash benefit up to 60% of their average basic salaries for the 6 months prior to the loss of employment
- Cash benefit provided for a maximum of 3 consecutive months for those who pay the monthly premium for at least 12 consecutive months
- Downloadable brochure, policy terms and conditions, and user manual available
- Eligibility: Emiratis and Residents working in the federal government and private sectors
- Exempted categories include investors, domestic helpers, temporary-contract workers, juveniles under 18, and retirees who joined a new job while entitled to a pension
- Compensation benefits depend on the average basic salary and are categorized as A (16,000 AED or below) and B (above 16,000 AED)
- Maximum claim benefits for Category A: 10,000 AED per month; Category B: 20,000 AED per month
- Maximum compensation for any one claim is 3 consecutive months
- Maximum period of benefits is during the insurance period over the entire work life of the insured in the UAE, with an aggregate claim payment limit of 12 monthly benefits
- Subscription channels: ILOE Portal, ILOE Mobile App, Direct Channels (free of charge), other channels subject to additional service charge upon subscription
The Unemployment Insurance Scheme serves as a crucial safety net, offering financial assistance to individuals who have lost their jobs and are actively seeking new employment opportunities. This scheme aims to provide temporary income support to help individuals meet their basic needs while they search for suitable employment.
Eligibility for the Unemployment Insurance Scheme
To be eligible for the Unemployment Insurance Scheme, certain criteria must be met. These include:
- Employment Status: Applicants must have been employed and actively contributing to the scheme for a specific period before becoming unemployed.
- Job Termination: Job loss should be due to reasons beyond the employee’s control, such as retrenchment, redundancy, or company closure. Voluntary resignations are typically not covered.
- Active Job Search: Applicants must be actively seeking employment and willing to comply with job-seeking requirements set by the scheme.
- Contributory Period: The applicant’s previous employment must have met the minimum contributory period required by the scheme.
It is important to review the specific eligibility requirements outlined by the Unemployment Insurance Scheme authorities to ensure compliance and determine eligibility.