The UAE’s involuntary loss of employment insurance UAE (ILOE) scheme, launched on January 1, 2023, has been a game-changer in employment. It provides a safety net for employees who lose their jobs due to no fault.
However, it’s important to note that the scheme’s payout is only effective from January 2, 2024, and any job loss claims submitted until then will be rejected.
In this article, we’ll explore the ins and outs of the ILOE scheme and how to sign up for it. We’ll also highlight the importance of seeking the help of a labour lawyer for ILOE cases in the UAE.
Office of Younis Mohammed Al Blooshi. Whatsapp: Click here. Location: Sobha Ivory 1 – Al Amal St – Business Bay – Dubai. Phone: 00971589984123.
Table of Contents
What is Involuntary Loss of Employment Insurance UAE?
Involuntary Loss of Employment (ILOE) insurance is a scheme introduced by the UAE government to provide financial assistance to employees who lose their jobs involuntarily.
The ILOE scheme is mandatory for all employees in the UAE, including citizens. Policyholders must sign up before the June 30 deadline to be eligible for any payout.
How does the ILOE scheme work?
The ILOE scheme provides financial assistance to employees who involuntarily lose their jobs due to redundancy, business closure, or restructuring.
For individuals earning a basic salary of Dh16,000 or less, in the event of a job termination, he/she will get up to Dh10,000 for up to 3 months. On basic salaries of over Dh16,000, the payout for a job loss would be up to Dh20,000 for the same 3-month term.
It’s important to note that the first payments against a job loss will effectively start from January 2, 2024, and all submissions until then will not be covered.
Dubai Insurance manages the ILOE Insurance Pool, and the policy is linked to the individual’s Emirates ID. Any change in job status will fetch the new employer’s name and basic salary details to check the category.
How to sign up for the ILOE scheme?
To sign up for the ILOE scheme, the UAE has provided multiple channels, including the dedicated website and app, the Al Ansari exchange outlets, bank apps, business centres and kiosks under Upay and ATMs (through C3 Pay).
Payment can also be made through the telecommunications bill and SMS. It’s crucial to remember that any payment missed by the individual risks the chances of a policy lapse if the payment is not made within 90 days of the due date.
Why is it essential to seek the help of a labour lawyer for ILOE cases in the UAE?
Involuntary loss of employment insurance UAE policies can be complex, and employees may find themselves vulnerable when making a claim. It’s essential to seek the help of a labour lawyer for ILOE cases in the UAE.
Among the best labour lawyers for ILOE cases in the UAE is Younis Mohammed Al Blooshi Labour Lawyer & Legal Consultant, who has extensive experience handling ILOE cases.
Seeking the help of a labour lawyer can help employees navigate the complexities of the ILOE scheme and ensure they receive the financial assistance they’re entitled to.
FAQs about involuntary loss of employment insurance UAE.
Conclusion.
The UAE’s Involuntary Loss of Employment (ILOE) scheme provides a safety net for employees who lose their jobs involuntarily due to no fault of their own.
All UAE employees, including citizens and policyholders, must sign up before the June 30 deadline to be eligible for any payout. The scheme’s payout is only effective from January 2, 2024, so any job loss claims submitted until then will be rejected.
It’s crucial to seek the help of a labour lawyer for ILOE cases in the UAE, and among the best is Younis Mohammed Al Blooshi Labour Lawyer & Legal Consultant.
Contact the office of Younis Mohammed Al Blooshi via Whatsapp. Click here. Or visit us at our address: Sobha Ivory 1 – Al Amal St – Business Bay – Dubai. You can also call us on phone: 00971589984123.
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A legal consultant specializing in UAE labor law. He regularly publishes articles on the website and writes on various areas of UAE law, with a specific focus on labor law.