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Involuntary Loss of Employment (ILOE) - dda
Involuntary Loss of Employment (ILOE)
Involuntary Loss of Employment (ILOE) is a scheme aimed at compensating the insured person with a cash amount for a limited period in case of unemployment.
Scope of application
All employees in the federal government sector and the private sector are required to participate in the scheme by purchasing an insurance policy that covers them in case their service ends according to the established eligibility criteria.
The following categories of workers are excluded from the scheme:
investors (the owner of the establishment where they work)
domestic workers
employees with temporary contracts
juveniles (those under the age of 18)
Emirati retirees who receive a pension and have joined a new job.
Subscription value
The worker is required to pay the insurance premium for a basic insurance package as per the categories mentioned below.
First category - If the worker’s basic salary is less than 16,000 AED, the premium is no more than 5 AED per month.
Second category - If the worker’s basic salary is more than 16,000 AED, the premium is no more than 10 AED per month.
Compensation
The insured worker is eligible for 60 per cent of the subscription salary for a period of 3 months, with a maximum of:
10,000 AED per month for the first category and
20,000 AED per month for the second category.
Channels for subscribing and paying premiums
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How to claim compensation?
In order to claim compensation,
the worker (insured person) must submit a claim to the insurance service provider within 30 days from the date of the end of the employment relationship after which,
the service provider will review the claim and respond; ensuring compensation is paid within two weeks of the submission date.
Conditions for claiming compensation
To ensure that the insured person receives the insurance coverage, the following conditions must be met:
The insured person must have been subscribed to the scheme for at least 12 continuous months.
The insured person must have paid all insurance premiums according to the schedule chosen.
The insured person must prove that he/she is unemployed for reasons other than resignation.
The insured person must not have been dismissed from his/her job for disciplinary reasons according to the labour law and human resources law in the federal government, or other relevant legislation.
The claim must be submitted within 30 days from the end of the employment relationship or the resolution of the labour dispute.
The insured person must not have an ongoing work absence complaint.
The claim should not be based on fraud or deceit, or if it is proven that the employer is fictitious.
The job loss must not result from strikes or non-peaceful protests, regardless of whether he/she caused damage.
The insured person must be present in the country.
Compensation will be suspended if the worker/employee finds a new job during the period of eligibility for compensation.
Fines for not subscribing to the unemployment insurance scheme according to Cabinet Resolution No. (97) of 2022
A worker who does not subscribe to the Unemployment Insurance Scheme will be fined 400 AED.
A worker who does not pay the premiums will be fined 200 AED.
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