ILOE Dubai: How to Apply for Involuntary Loss of Employment
Involuntary Loss of Employment (ILOE) Insurance
In this article, we cover what is Involuntary Loss of Employment (ILOE) insurance, its benefits, and how you can apply for it.
Job seekers often struggle to secure employment in today’s fiercely competitive environment, where specific skill sets are in high demand. This highlights the importance of landing a job and understanding how to safeguard your interests in the workplace once you’re employed.
Enter the UAE Unemployment Insurance (ILOE), a groundbreaking initiative launched by the UAE government to protect employees from unexpected job loss.
What is ILOE?
The Involuntary Loss of Employment (ILOE) insurance scheme was established under Federal Decree-Law No. 13 of 2022, which came into effect on January 1, 2023. The program aims to provide financial security to employees in the federal government and private sectors who lose their jobs due to reasons beyond their control, such as layoffs or economic downturns. Notably, this excludes cases of voluntary resignation or disciplinary dismissals.
Why is Involuntary Loss of Employment (ILOE) important?
The ILOE scheme serves as an important feature in the following ways:
- Financial Security: It ensures that employees have a safety net during periods of unemployment, allowing them to maintain their standard of living while seeking new job opportunities.
- Economic and Mental Stability: By providing financial assistance, ILOE helps stabilize the economy by reducing the impact of job loss on families and communities. It also promotes mental stability by alleviating the stress and anxiety associated with unemployment, allowing for a shifting focus to finding new employment rather than the overwhelming burden of financial insecurity.
- Attracting Talent: The scheme enhances the competitiveness of the UAE job market, making it more attractive for both local and international talent.
Benefits of ILOE
A major benefit of Involuntary Loss of Employment (ILOE) is the income replacement that buys time to regroup and refocus on seeking new job opportunities, other benefits include:
- Career Flexibility: With the help of this initiative, job seekers can avoid making rushed decisions driven by financial pressure. ILOE allows you to take your time, strategize, and find a job that aligns with both your skillset and career goals.
- Cash Benefit: Eligible employees can receive up to 60% of their average basic salary from the last six months before job loss, this is capped at AED 20,000 per month for those with higher salaries.
- Duration of Support: The maximum support in compensation is 3 consecutive months per claim, which buys just enough time to find re-employment.
- Economic Resilience: The ILOE initiative goes beyond benefiting white-collar workers; it has a far-reaching effect on the entire economy. By strengthening workforce stability and resilience, it helps minimize disruptions at both personal and economic levels.
- Accessibility: Another key advantage is the easy access to application channels, including online portals and mobile apps, which make the process simple and convenient to utilize.
Legal Framework and Compliance
The ILOE program operates under a robust legal framework:
- Federal Decree-Law No. 13/2022: Establishes the foundation for the unemployment insurance scheme.
- Cabinet Decision No. 97/2022: Outlines specific operational guidelines for implementing the ILOE program.
Mandatory Participation
Enrolment in ILOE insurance is compulsory for all employees in the private sector and federal government sectors. Failure to comply with premium payments can lead to policy cancellation and fines ranging from AED 400 to AED 2,000. Employees must pay premiums for at least 12 consecutive months before they can claim benefits.
How to Apply for Involuntary Loss of Employment (ILOE)
Applying for ILOE is straightforward and can be done through multiple platforms, both online and offline. Here’s the ultimate step-by-step breakdown
Check Eligibility:
Before you apply, ensure you fall under the categories eligible for ILOE. The insurance applies to:
- Employees in the private sector (excluding owners and partners)
- Federal government employees
- Non-resident employees
Excluded from the scheme are:
- Business owners and investors
- Domestic workers
- Employees on temporary contracts and juveniles under 18 years
- Retirees who have started receiving a pension and rejoined the workforce.
Choose Your Subscription Plan
ILOE offers two main subscription categories:
- Category A (for employees earning a basic salary of AED 16,000 or less): The insurance premium is AED 5 per month (or AED 60 annually). This plan covers up to AED 10,000 per month in compensation.
- Category B (for employees earning a basic salary above AED 16,000): The premium is AED 10 per month (or AED 120 annually), with compensation of up to AED 20,000 per month.
Submit Your Application
The process is designed to be quick, intuitive, and available on various platforms. You can sign up through:
- ILOE official website (iloe.ae)
- UAE Government’s official mobile apps (like the MOHRE or DubaiNow app)
- Banks, ATMs, and kiosks offering ILOE subscription services
- Customer service centers and certified brokers
Once you choose your category, you’ll simply follow the instructions to input your details, select your payment method, and you’re officially covered. Expect a confirmation within a few minutes.
Keep Track of Your Payments
To maintain coverage, keep your payments up to date. You’ll need to pay either monthly, quarterly, semi-annually, or annually, depending on what works best for you. Missing payments could invalidate your insurance and leave you unprotected, so stay on top of it.
Filing a Claim
If you (unfortunately) do find yourself unemployed, filing a claim is just as simple:
- You’ll need to submit the claim within 30 days of losing your job.
- The claim can be filed online through the ILOE website or the same app you used for enrollment.
- Expect the insurance payout within two weeks, provided your claim is valid.
Laws, Regulations, and Compliance Dates
The ILOE Law was enforced under Cabinet Resolution No. (97) of 2022 and took effect on January 1, 2023. Non-compliance with this law means you’re at risk of incurring fines between AED 400 and AED 2,000 if you don’t enroll by the deadlines.
Important Notice: As per UAE labor laws, all eligible employees must sign up for ILOE by the designated deadline. Employees who neglect to enroll within the stipulated timeframe risk financial penalties and potential visa and work permit complications.
Conclusion
ILOE isn’t just an insurance policy; it’s future-proofing your move for every eventuality as an employee in the UAE. The world of work is unpredictable, but having a financial buffer between you and the uncertainties associated with job loss is a powerful step toward stability and peace of mind.
FAQ’s
The Involuntary Loss of Employment (ILOE) is a mandatory insurance scheme in the UAE designed to provide financial support to employees who lose their jobs due to circumstances beyond their control. It was introduced to create a more secure and resilient workforce, providing employees with financial stability while they seek new employment opportunities.
ILOE applies to UAE employees in both the private and public sectors, except for certain groups, including investors, business owners, domestic workers, temporary and part-time employees, and juveniles under 18 years. Retirees receiving a pension who have returned to work are also excluded
Eligible employees receive up to 60% of their average basic salary from the last six months before job loss. The benefit is capped at AED 20,000 per month and provides income for up to three months, helping employees manage their expenses while they look for new opportunities.
Applying for ILOE is straightforward. You can apply through online channels, including the ILOE official website, UAE government mobile apps (like the MOHRE or DubaiNow app), or at select banks, ATMs, and customer service centers. You just need to select your insurance category and payment plan, complete the application, and keep up with regular payments.
Failing to enrol in ILOE by the specified deadline can result in fines ranging from AED 400 to AED 2,000. Additionally, not complying with the mandatory insurance requirement could impact your employment status or work visa in the UAE.
