Losing a job can turn life upside down, especially when rent, bills and other expenses don’t stop coming. For employees in the UAE, the Involuntary Loss of Employment (ILOE) insurance scheme offers a financial cushion during this uncertain period.
Mandatory for eligible public and private sector employees, the government-backed scheme provides cash compensation to those who lose their jobs involuntarily, helping them manage expenses as they look for their next opportunity.
Before claiming their ILOE benefits, employees must meet eight eligibility conditions, including how long they have been subscribed to the scheme, the circumstances of their job loss and their legal status in the country.
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Here are the eight conditions employees must meet to claim unemployment insurance compensation, as per the Ministry of Human Resources and Emiratisation (Mohre).
1. At least 12 months of subscription. The insured employee must have been subscribed to the scheme for at least 12 consecutive months. This means employees cannot sign up only after losing their jobs and immediately claim benefits.
2. No disciplinary dismissal. Employees who are dismissed for disciplinary reasons are not eligible for compensation. This means the job loss must be involuntary and cannot result from disciplinary action taken against the worker. Those who lose their jobs through circumstances that do not fall under this may still qualify, as long as they meet the other conditions.
3. No fraud or fictitious employer. Claims must be genuine and supported by accurate information. Employees cannot receive compensation if their claim involves fraud or deceit. The condition also excludes cases in which the employer is proven to be fictitious, meaning the employment arrangement itself is not genuine.
4. No new job during the compensation period. The insurance is intended to provide temporary financial support while employees look for new work. If an insured person finds another job during the period in which they are eligible to receive compensation, the payments will be suspended. The scheme is not intended to provide unemployment benefits to someone who has already returned to employment.
5. Claim within 30 days. Employees must pay attention to the deadline when applying for compensation. A claim must be submitted within 30 days of the end of the employment relationship or, where a labour dispute is involved, within 30 days of its resolution.
6. No ongoing work absence complaint. Employees must not have an active work absence complaint against them when claiming compensation. Such complaints relate to cases in which an employee is reported as being absent from work without a valid reason or without following the required procedures. Workers facing this situation should resolve any outstanding complaint before seeking compensation.
7. Job loss must not stem from strikes. The scheme does not cover job losses resulting from strikes or non-peaceful protests, regardless of whether the insured employee personally caused damage. Compensation, therefore, is not available when the loss of employment is connected to these circumstances.
8. Legal presence in the UAE. The insured employee must be legally present in the country, which means maintaining a valid residency status. However, losing a job does not necessarily mean a resident’s visa is cancelled immediately. Employees may be given time before their employer cancels their residency, and the UAE also grants grace periods of 30 to 180 days after a residence visa expires or is cancelled, depending on the residency category.
During this period, residents must ensure they continue to meet the scheme’s eligibility requirements to claim compensation.
Source: Khaleej Times