Job loss can be an unexpected and stressful experience, especially for professionals building their careers in the United Arab Emirates (UAE). To support employees during such transitions, the UAE Government introduced the Involuntary Loss of Employment (ILOE) Insurance Scheme, which provides eligible private-sector and federal government employees with temporary financial compensation if they lose their job due to termination, excluding resignation or disciplinary dismissal.
What is Insurance Loss of Employment?
The government of UAE introduced a scheme under the Federal Decree Law No. 13 of 2022 concerning the Involuntary Loss of Employment (ILOE), this scheme provides security for employees who lost their jobs due to reasons other than disciplinary action or resignation until they find a new job. It aims to compensate the insured with a cash amount for a maximum period of three months per claim when they lose their job. This scheme is mandatory for Emiratis and residents working in both the private sector and the federal government. Please make sure to subscribe to the scheme within three months of receiving your work permit, as failure to do so may result in penalties.
How do you subscribe to ILOE?
1. Official Channels
You can subscribe to the insurance scheme using ILOE website https://www.iloe.ae/ or ILOE Smart App, available on Android and IOS. Signing up for unemployment insurance is completely free of charge using the official portals.
2. Kiosks
There are two payment service providers MBME Pay and uPay with multiple kiosks located in the UAE.
3. Exchange Centers
You can subscribe and pay for your insurance scheme by visiting any of the Al Ansari Exchange branches https://alansariexchange.com/branches/ or through Al Ansari Exchange app.
4. Bank Apps and ATM Machines
You can subscribe to insurance scheme using C3Pay and Botim. C3Pay is a product offered by Edenred which operates under banking identification and BIN sponsorship from RAKBANK authorized by Central Bank of UAE.
4. Tasheel and Tawjeeh
You can subscribe to the insurance scheme at a Tasheel or Tawjeeh service centre operated by Ministry of Human Resources and Emiratisation (MoHRE). At the centre, you will require your emirates ID and mobile number to subscribe to the ILOE scheme.
What happens if you miss your insurance payment date?
To keep the insurance policy active, the insured person must pay the premium on time. If the payment is delayed for more than three months from the due date, the policy may be cancelled, and a fine may be charged as per the law.
When can you claim ILOE?
You can submit your claim upon termination by the employer due to restructuring, redundancy or company closure. This is not applicable if you resign voluntarily or if you are dismissed for misconduct or disciplinary reasons.
How can you claim ILOE?
1. Check Eligibility
Ensure you have been subscribed for at least 12 consecutive months and have no outstanding premium payments.
2. Prepare Documents
You will require Emirates ID, cancelled employment contract or work permit and a stamped termination letter from your employer showing the date and reason for unemployment.
3. Apply Online
Within 30 days of termination, visit the ILOE website https://www.iloe.ae/, log in using your Emirates ID and UAE registered mobile number to submit your claim.
4. Receive Compensation
If approved, you will receive a monthly cash benefit equal to 60% of your average basic salary for the 6 months prior to your job loss. This compensation is paid for a maximum of 3 consecutive months per claim provided there are no outstanding premium payments. When submitting your application, you can choose to receive your payout directly via direct bank transfer or as a cash pickup at approved partners like Al Ansari Exchange.
Penalities
Involuntary Loss of Employment (ILOE) insurance scheme is mandatory by law for most employees in the UAE’s private and federal government sectors. Failing to register within four months of getting your work permit or failing to renew your policy incurs a fine of AED 400.
Final Thoughts
The UAE’s Involuntary Loss of Employment (ILOE) Insurance Scheme is an important safety net for employees, offering temporary financial support during an unexpected job loss. By subscribing on time and understanding how the claim process works, employees can stay prepared and avoid unnecessary delays or penalties.
While losing a job can be challenging, having the right information and support can make the transition smoother. At Empleo Consultants, we believe that the right guidance can make career transitions easier and help professionals move forward with confidence.
For personalized assistance and expert advice, don’t hesitate to contact us at:
+971 58 576 8468
empleoconsultants.com
