New UAE rule: All employees must get job loss insurance from 2023, ministry announces

Employees of private sector companies and federal government departments can subscribe to the scheme from as low as Dh5 per month

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A Staff Reporter

Published: Wed 9 Nov 2022, 2:36 PM

Last updated: Sat 12 Nov 2022, 1:27 PM

Purchasing an insurance scheme against job loss will be a mandatory requirement once the programme goes into effect from January 1, 2023, the Ministry of Human Resources and Emiratisation (MoHRE) has announced.

Employees of private sector companies and federal government departments can subscribe to the Unemployment Insurance Scheme from as low as Dh5 per month.

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The scheme offers a cash benefit for a limited period not exceeding three consecutive months per claim, in the event of job loss due to a non-disciplinary reason.

Subscription channels

>> Insurance pool's website (www.iloe.ae) and smart application

>> Bank ATMs and kiosk machines

>> Business service centres

>> Money exchange companies

>> du and Etisalat

>> SMS

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Who will provide the insurance?

According to the MoHRE, the scheme will be offered by the Dubai Insurance Company, which is the representative of the insurance pool consisting nine companies:

>> Dubai Insurance Company

>> Abu Dhabi National Insurance Company

>> Al Ain Ahlia Insurance Company

>> Emirates Insurance Company

>> National General Insurance Company

>> Orient Insurance

>> Abu Dhabi National Takaful Company

>> Oman Insurance Company

>> Orient UNB Takaful Company

Premiums and compensation

There are two categories:

>> Category 1: Basic salary of Dh16,000 and below

Insurance premium: Dh5 per month

Monthly compensation: Will not exceed Dh10,000

>> Category 2: Basic salary above Dh16,000

Insurance premium: Dh10 per month

Monthly compensation: Will not exceed Dh20,000

How claims are calculated

>> The monthly compensation will be 60 per cent of the average salary over the most recent 12 months prior to job loss.

>> Maximum compensation for any one claim: Three consecutive months

>> Maximum period of benefits: During the insurance period over the entire work life of the insured in the UAE, the aggregate claim payment shall not exceed 12 monthly benefits (regardless of the number of claims submitted).

Eligibility criteria

According to the insurance pool's website, in order to be eligible for compensation, the insured must meet the following criteria:

>> Minimum subscription period is 12 consecutive months.

>> All insurance premiums must have been paid on time.

>> The reason for unemployment should not be resignation.

>> Job loss must not have been due to a disciplinary reason.

>> The claim must be submitted within 30 days from the date of job loss.

>> The worker should not have an existing complaint related to absence from work.

>> The employee will not be entitled for compensation if there has been fraud or deceit involved in his/her claim.

>> The loss of employment should not be the result of non-peaceful labour strikes or stoppages.

>> The insured must be legally present in the UAE.

>> The loss of employment should not be the result of one of the following reasons:

- War, riot, insurrection, armed rebellion, revolution, military or usurping force, invasion, act of a foreign enemy, hostilities, civil war, or civil disorder.

- Discharge of pollutants, a nuclear event, a radioactive, toxic, explosive or other dangerous effect of any explosive nuclear equipment or part of such equipment.

- Biological or chemical pollution resulting from or contributing to terrorism.

- Direct action by the government of the UAE that led to the expropriation or nationalisation of the employer’s facility or the confiscation of his/her money, leading to insolvency.

- Force majeure (unforeseeable circumstances) in accordance with the Civil Transactions Law.

A Staff Reporter

Published: Wed 9 Nov 2022, 2:36 PM

Last updated: Sat 12 Nov 2022, 1:27 PM

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