Dubai job loss insurance has become an increasingly important topic in recent years. The UAE government has implemented several schemes to provide financial support for those who have lost their jobs. One such scheme is the Involuntary Loss of Employment (ILOE) insurance, which provides security for employees who have lost their jobs due to reasons other than disciplinary action or resignation until they find a new job.

The ILOE insurance scheme has ultra-low monthly premiums that range from Dh5 to Dh10. The insured can get 60% of their basic salary for up to three consecutive months per claim if they have been subscribed to the scheme for at least twelve consecutive months. To be eligible for the scheme, employees must have a valid UAE mobile number and Emirates ID or Unified Number. The scheme is available to both government and private sector employees.

What is Dubai Job Loss Insurance?

Dubai Job Loss Insurance is an insurance scheme that provides security for employees who lost their jobs due to reasons other than disciplinary action or resignation. The scheme is also known as the Involuntary Loss of Employment (ILOE) insurance and is implemented in accordance with the Federal Decree Law No. 13 of 2022.

The insurance scheme provides financial support to Emiratis and residents working in the federal and private sectors who lose their jobs due to termination by their employers. The compensation benefit is based on the insured person’s last salary and is paid for a maximum of six months or until the person finds a new job, whichever comes first.

The premiums for the insurance scheme are ultra-low and range from Dh5 to Dh10 per month. The insured person can receive up to 60% of their last salary, subject to a maximum of Dh20,000 per month. The exact amount of compensation is calculated based on the insured person’s salary and the number of months they have been paying premiums.

The insurance scheme is mandatory for all employees working in the UAE and will go into effect from 2023. The scheme is spearheaded by the Ministry of Human Resources and Emiratisation (MoHRE) and is aimed at providing financial security to employees who lose their jobs due to no fault of their own.

In summary, Dubai Job Loss Insurance is an insurance scheme that provides financial support to employees who lose their jobs due to reasons other than disciplinary action or resignation. The scheme is mandatory for all employees working in the UAE and provides compensation benefits based on the insured person’s last salary and the number of months they have been paying premiums.

Eligibility for Dubai Job Loss Insurance

Dubai Job Loss Insurance is an initiative by the Ministry of Human Resources and Emiratisation (MoHRE) to provide financial assistance to eligible employees who have lost their jobs. The insurance scheme is mandatory for all employees in the UAE from 2023 onwards, and it covers both UAE nationals and expatriates.

To be eligible for Dubai Job Loss Insurance, employees must meet the following criteria:

  • Employment: The employee must have been employed in the UAE for a minimum period of 12 consecutive months, and the employment must have been terminated by the employer.

  • Basic Salary: The employee’s basic salary must not exceed AED 16,000 per month. If the basic salary is less than or equal to AED 16,000, the employee will need to pay a monthly insurance premium of AED 5, and the compensation should not exceed AED 10,000 per month. If the basic salary is more than AED 16,000, the employee will need to pay a monthly insurance premium of AED 10, and the compensation should not exceed AED 15,000 per month.

  • Insurance Period: The employee must have paid the monthly insurance premium for at least 12 consecutive months before the date of termination of employment. The insurance period is calculated from the date of the first payment of the premium.

Dubai Job Loss Insurance has two categories:

  • Category A: This category covers UAE nationals who are working in the private sector, federal government, and semi-governmental entities.

  • Category B: This category covers expatriates who are working in the private sector and are holding a valid residency visa.

The eligible employees will be compensated with a monthly cash benefit up to 60% of their average basic salaries of the 6 months prior to the loss of employment. The cash benefit shall be provided for a maximum of 3 consecutive months for a claim. The compensation is subject to the terms and conditions of the insurance policy.

Overall, Dubai Job Loss Insurance is a valuable safety net for employees who have lost their jobs due to unforeseen circumstances. It provides financial assistance to eligible employees and helps them to manage their daily expenses until they find a new job.

How to Subscribe to Dubai Job Loss Insurance

Dubai job loss insurance is mandatory for all those working in the federal government and private sectors. To subscribe to this insurance, one needs to follow a few simple steps.

Eligibility

Before subscribing to the insurance, it is important to know if you are eligible for it. Emiratis and residents working in the federal government and private sectors are eligible to subscribe. Exempted categories include domestic workers, workers on probation, and those who have been terminated due to misconduct.

Subscription Channels

There are various channels through which one can subscribe to Dubai job loss insurance. These include direct channels such as the insurance company’s website or customer service center, as well as additional service charge channels such as banks, exchange houses, and other payment centers.

Premium and Monthly Benefit

The premium for Dubai job loss insurance is as low as Dh5 per month, and the monthly benefit is up to Dh10,000 for a period of up to six months. The premium is deducted from the insured’s salary on a monthly basis.

Payment Options

Dubai job loss insurance offers various payment options to make it easier for subscribers to pay their premiums. These options include online payment, payment through banks, exchange houses, and other payment centers.

Insurance Company

The insurance company responsible for providing Dubai job loss insurance is the National Bonds Corporation PJSC. They are the sole provider of this insurance in the UAE.

In conclusion, subscribing to Dubai job loss insurance is a simple and straightforward process. Eligible individuals can subscribe through direct or additional service charge channels, pay a low premium on a monthly basis, and enjoy a monthly benefit of up to Dh10,000 for a period of up to six months in case of involuntary loss of employment.

Benefits of Dubai Job Loss Insurance

Dubai Job Loss Insurance provides a safety net for employees who have lost their jobs due to non-disciplinary reasons. Here are some of the benefits of this insurance scheme:

Compensation for Job Loss

The insurance scheme provides 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. The amount of compensation depends on the monthly salary of the employee at the time of termination. The insured can receive up to 60% of their monthly salary, subject to a maximum of AED 15,000 per month.

Monthly Benefit

The monthly benefit is calculated based on the average monthly salary earned by the insured during the last six months of employment. This ensures that the insured receives a fair and reasonable amount of compensation that reflects their income level.

Low Insurance Premiums

The insurance scheme has ultra-low monthly premiums that range from AED 5 to AED 10, making it affordable for all employees. The premiums are deducted from the employee’s salary and deposited into an insurance pool managed by the government.

Insurance Pool

The insurance pool is a fund that accumulates the premiums paid by the insured employees. The pool is managed by the government and used to pay out compensation to employees who have lost their jobs. The pool ensures that the insurance scheme remains sustainable and financially viable.

Decent Living

The insurance scheme provides a safety net for employees who have lost their jobs, ensuring that they can maintain a decent standard of living while they search for new employment. The compensation provided by the insurance scheme can help cover essential expenses like rent, utilities, and groceries, reducing the financial stress of job loss.

In summary, Dubai Job Loss Insurance provides a safety net for employees who have lost their jobs due to non-disciplinary reasons. The insurance scheme offers compensation, low insurance premiums, and a sustainable insurance pool. The monthly benefit is calculated based on the average monthly salary earned by the insured during the last six months of employment, ensuring that the insured receives a fair and reasonable amount of compensation. The insurance scheme helps ensure that employees can maintain a decent standard of living while they search for new employment.

How to Claim Dubai Job Loss Insurance

To claim Dubai job loss insurance, the insured must have an active policy with an insurance company that provides job loss coverage. The maximum period of benefits during the insurance period over the entire work life of the insured in the UAE is 12 monthly benefits, regardless of the number of claims submitted.

To file a claim, the insured must follow the procedures outlined by their insurance company. The ILOE portal managed by Dubai Insurance is one of the insurance companies that offer job loss coverage in the UAE. The insurance pool of ILOE is managed by Dubai Insurance, and there is a dedicated call center for subscribers to the scheme.

Once the insured has lost their job and meets the eligibility criteria, they can submit their claim through the insurance company’s website or call center. The compensation benefit for those with a basic salary of AED 16,000 or less must not exceed a monthly amount of AED 10,000. Those with a basic salary exceeding AED 16,000 will need to pay AED 10 per month, i.e. AED 120 annually.

The insured will need to provide the necessary documents to support their claim, such as proof of job loss and salary details. The insurance company will then review the claim and make a decision on whether to approve or deny it. If the claim is approved, the insurance company will provide the insured with the compensation benefit for the maximum period of benefits.

It is important to note that the insured must continue to pay their monthly insurance premium to maintain their job loss coverage. Failure to pay the premium may result in the policy being canceled, and the insured will not be eligible to claim job loss benefits.

In summary, to claim Dubai job loss insurance, the insured must have an active policy with an insurance company that provides job loss coverage. They must follow the procedures outlined by their insurance company, provide the necessary documents to support their claim, and continue to pay their monthly insurance premium to maintain their coverage.

Dubai Job Loss Insurance for Different Sectors

The Dubai government has introduced job loss insurance for employees who lose their jobs involuntarily. The scheme provides financial support to employees who lose their jobs due to reasons other than disciplinary action or resignation. The insurance is mandatory for all private sector employees and optional for government sector employees.

Private sector employees are required to subscribe to the scheme within 90 days from the date of their employment. Failure to subscribe to the scheme within the stipulated time frame will result in a penalty of AED 400 for employees. The scheme covers all private sector employees, including those working in free zones and semi-government firms.

Government sector employees can opt-in to the scheme by paying a premium of 1.5% of their monthly salary. The scheme covers all government sector employees, including UAE nationals and expatriates.

The job loss insurance scheme covers workers across different sectors, including construction, hospitality, retail, and more. The insurance provides financial support to employees who lose their jobs involuntarily, helping them cope with the financial impact of job loss.

Investors and retirees are not covered under the job loss insurance scheme. However, retirees can benefit from other social security schemes offered by the Dubai government.

In conclusion, the job loss insurance scheme is a valuable safety net for employees who lose their jobs involuntarily. Private sector employees are required to subscribe to the scheme, while government sector employees can opt-in by paying a premium. The scheme covers workers across different sectors, providing financial support to help them cope with the financial impact of job loss.

Dubai Job Loss Insurance for UAE Residents

Starting from January 1, 2023, Dubai job loss insurance will be mandatory for all legally present UAE residents. Spearheaded by the Ministry of Human Resources and Emiratisation (MoHRE), the insurance scheme aims to provide financial support to employees who lose their jobs involuntarily.

The insurance scheme offers ultra-low monthly premiums that range from AED 5 to AED 10, depending on the employee’s basic salary. Workers with a basic salary of AED 16,000 or less will need to pay a monthly insurance premium of AED 5, while those with a basic salary exceeding AED 16,000 will need to pay AED 10 per month.

In case of job loss, the eligible employees will be compensated with a monthly cash benefit up to 60% of their average basic salaries of the 6 months prior to loss of employment. The cash benefit shall be provided for a maximum of 3 consecutive months for a claim only for the workers who pay the monthly premium for at least 12 consecutive months.

To be eligible for the Dubai job loss insurance, the employee must have a valid Emirates ID and be legally present in the UAE. The compensation for this category must not exceed a monthly amount of AED 10,000.

The Dubai job loss insurance is a significant step towards ensuring social security and financial stability for UAE residents during these uncertain times. It is a welcome move that will provide a safety net for those who lose their jobs involuntarily, offering them a sense of security and peace of mind.

Dubai Job Loss Insurance for Domestic Workers

Dubai’s job loss insurance scheme also covers domestic workers who have lost their jobs involuntarily. The scheme, which was implemented in April 2021, provides enhanced benefits for both employers and domestic workers by including additional coverages and more flexible terms.

Under the scheme, domestic workers who have lost their jobs due to reasons other than disciplinary action or resignation are eligible for cash compensation. The compensation is calculated based on the worker’s basic salary, up to a maximum of the last 120 days prior to the last working day. The compensation benefit is up to AED 5,000 per month, for a maximum of three months per claim.

Domestic workers who are exempted from the scheme include those who are on a temporary basis, juveniles under the age of 18, and retirees who receive a pension and have joined a new employer.

The insurance premium for domestic workers is AED 60 annually, which is payable on an annual basis. The premium is only applicable to workers with a basic salary of AED 16,000 or less. The premium is AED 5 per month, plus VAT.

To be eligible for the compensation benefit, all insurance premiums must have been paid on time. The reason for unemployment should not be resignation, and 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, and the worker should not have an existing complaint related to absence from work.

Overall, the job loss insurance scheme is a valuable safety net for domestic workers who have lost their jobs involuntarily. It provides financial support to help them get back on their feet and find new employment.

Dubai Job Loss Insurance for Business Owners

Dubai’s Job Loss Insurance Scheme is a safety net for employees who lose their jobs involuntarily. However, it is also important for business owners to understand how this scheme affects them, their employees, and their business.

Under the scheme, business owners are required to pay a monthly premium of AED 60 per employee to provide coverage for their employees. Failure to do so can result in fines of up to AED 5,000 per employee. This means that business owners must ensure that they are enrolled in the scheme and that they are paying the correct premiums for their employees.

It is important to note that the coverage provided by the scheme is only on a temporary basis and lasts for up to 12 months. This means that business owners must be prepared to support their employees after the coverage ends. This can be done by providing them with job opportunities within the company or by assisting them in finding new employment.

Business owners should also be aware that the scheme does not cover employees who are terminated due to disciplinary action or resignation. This means that employees who voluntarily leave their jobs or are terminated due to misconduct are not eligible for coverage under the scheme.

In conclusion, business owners in Dubai must ensure that they are enrolled in the Job Loss Insurance Scheme and are paying the correct premiums for their employees. They must also be prepared to support their employees after the coverage ends and be aware of the limitations of the scheme. By doing so, they can ensure that their employees are protected and their business is in compliance with the regulations.

Dubai Job Loss Insurance and Disciplinary Action

Dubai’s job loss insurance scheme, known as the Involuntary Loss of Employment (ILOE), provides financial security for employees who lose their jobs due to reasons other than disciplinary action or resignation. However, if an employee is terminated due to disciplinary reasons such as fraud or deceit, they may not be eligible for compensation under the ILOE scheme.

Disciplinary action can be taken against an employee for a variety of reasons, including theft, dishonesty, or violation of company policies. If an employee is terminated due to such reasons, they may not be eligible for compensation under the ILOE scheme. It is important for employees to understand their rights and responsibilities in the workplace to avoid disciplinary action that could lead to job loss.

Employers are required to follow proper procedures when taking disciplinary action against an employee. This includes providing the employee with a written notice of the disciplinary action, giving them an opportunity to respond, and providing them with the right to appeal the decision. If an employee feels that they have been unfairly terminated, they can file a complaint with the Ministry of Human Resources and Emiratisation (MoHRE).

It is important for employees to be aware of their rights and responsibilities in the workplace to avoid disciplinary action that could lead to job loss. The ILOE scheme is designed to provide financial security for employees who lose their jobs due to reasons other than disciplinary action or resignation. However, if an employee is terminated due to disciplinary reasons such as fraud or deceit, they may not be eligible for compensation under the scheme.

Dubai Job Loss Insurance and Unemployment

Dubai has recently introduced a mandatory Unemployment Insurance Scheme to provide financial support to eligible employees in the event of involuntary loss of employment. The scheme is aimed at both Emiratis and residents working in the federal and private sectors.

Under the scheme, eligible employees need to pay up to Dh120 to receive up to Dh20,000 monthly financial compensations for up to three months until they find a new job, if they lose their job due to termination by their employer. The eligible employees will be compensated with a monthly cash benefit up to 60% of their average basic salaries of the 6 months prior to the loss of employment.

The scheme is set to come into effect from January 1, 2023, and it is mandatory for all employees to purchase an insurance scheme against job loss. The Ministry of Human Resources and Emiratisation has made it mandatory for all employees to be covered under the scheme.

To be eligible for compensation, the insured must meet certain criteria. Residents and UAE nationals who are working in the private or public sectors can avail of the country’s job loss insurance scheme. Individuals with professional designations are also eligible to join the program. The insured must have been employed for at least 30 days before the involuntary loss of employment.

The Unemployment Insurance Scheme is a form of insurance/social security that provides financial support to the insured if they lose their jobs as a result of termination by their employers. The scheme aims to provide a safety net for the insured and their families during times of financial hardship.

Dubai Job Loss Insurance and Force Majeure

Dubai’s job loss insurance scheme, introduced in 2023, provides financial security for employees who lose their jobs due to reasons other than disciplinary action or resignation. The scheme is mandatory for all employees in the private and federal sectors, and it provides financial support until the employee finds new employment.

However, the scheme does not cover job losses due to force majeure events such as civil war, war, or non-peaceful labor strikes. Force majeure refers to unforeseeable circumstances beyond the control of the parties involved that makes it impossible to fulfill their obligations.

In the case of force majeure, an employee may not be eligible for job loss insurance benefits. Employers are not required to provide compensation in such situations, as they are not responsible for the job loss.

It is essential to note that force majeure events are not limited to civil war, war, or non-peaceful labor strikes. Other events, such as natural disasters, pandemics, or government orders, may also be considered force majeure events.

In such cases, employees may be eligible for compensation under other insurance schemes or government programs. For example, during the COVID-19 pandemic, the UAE government introduced various support schemes for individuals and businesses affected by the pandemic.

In conclusion, Dubai’s job loss insurance scheme provides essential financial security for employees who lose their jobs due to reasons other than disciplinary action or resignation. However, it is crucial to understand that force majeure events are not covered by the scheme, and employees may need to seek compensation under other insurance schemes or government programs.

Dubai Job Loss Insurance and Social Security

Dubai has introduced a job loss insurance scheme called the Involuntary Loss of Employment (ILOE) in line with Federal Decree Law No. 13 of 2022. The scheme aims to provide financial security for employees who lose their jobs due to reasons other than disciplinary action or resignation until they find a new job.

The ILOE scheme is mandatory for all employees in Dubai, including Emiratis and residents working in the federal and private sectors. The scheme provides financial assistance to employees who lose their jobs by paying a percentage of their salary for up to six months. The amount of compensation depends on the employee’s salary and length of service with the employer.

Dubai’s job loss insurance scheme is part of the government’s efforts to provide social security to its citizens and residents. The scheme is designed to provide a safety net for employees who lose their jobs and to help them maintain their standard of living until they find a new job.

In addition to the job loss insurance scheme, Dubai also provides a pension scheme for its citizens and residents. The pension scheme aims to provide financial security for retirees by providing a regular income after retirement. The pension scheme is mandatory for all citizens and residents working in the public sector, and optional for those working in the private sector.

Overall, Dubai’s job loss insurance and pension schemes are designed to provide social security to its citizens and residents. These schemes aim to provide financial assistance to employees who lose their jobs and to retirees who no longer have a regular income. These social security measures help to ensure that Dubai’s citizens and residents can maintain their standard of living and financial security.

Dubai Job Loss Insurance and UAE Government

The UAE government has introduced a new job loss insurance scheme to support employees who lose their jobs. The scheme is mandatory for all employees in the UAE, and it is set to go into effect from January 1, 2023, as per the Federal Decree Law No. 13 of 2022. The scheme is being spearheaded by the Ministry of Human Resources and Emiratisation (MOHRE), which has partnered with Tawjeeh and Tasheel to implement the program.

Under the scheme, employees will be required to pay a monthly insurance premium ranging from AED 5 to AED 10, depending on their salary. The compensation benefit for the insurance scheme will be up to AED 20,000 per month for three months. However, the compensation for those with a basic salary of AED 16,000 or less must not exceed a monthly amount of AED 10,000, as per the official portal of the UAE government.

The take-up rates for the job loss insurance policy have been substantial, with the latest tally closing in on 3.4 million, as per Gulf News. The scheme is expected to provide a safety net for employees who lose their jobs due to various reasons, including redundancy, bankruptcy, and termination.

The UAE government has been bringing in employment reforms to ensure the welfare of employees in the country. The introduction of the job loss insurance scheme is a significant step towards safeguarding the interests of employees. The scheme is expected to provide a sense of security to employees, knowing that they have a safety net in place in case of job loss.

Conclusion

Dubai’s job loss insurance scheme is a significant step towards providing financial security to employees who lose their jobs involuntarily. The scheme, which was launched on January 1, 2023, provides coverage to private sector and federal government employees who lose their jobs due to reasons other than disciplinary action or resignation.

The insurance scheme has ultra-low monthly premiums that range from Dh5 to Dh10, making it affordable for most employees. The insured gets 60% of their last drawn salary for up to six months, providing them with financial stability while they search for new employment.

The scheme is part of the wider reforms that are being introduced in the employment space, and it is mandatory for employees working in the private sector and federal government employees to adopt the scheme.

While the scheme is a significant step towards providing financial security to employees, it is important to note that it is effective only from January 2, 2024. Claims made before this date will be rejected until the scheme becomes effective.

Overall, the scheme is a positive development for employees in Dubai, providing them with a safety net in case of involuntary job loss. It is a step in the right direction towards ensuring that employees are protected and have access to financial security during tough times.

Frequently Asked Questions

What is ILOE insurance?

ILOE insurance, or Involuntary Loss of Employment insurance, is a scheme implemented in accordance with the Federal Decree Law No. 13 of 2022. It provides security for employees who lost their jobs due to reasons other than disciplinary action or resignation until they find a new job. The scheme is available for employees working in both the government and private sectors.

How do I login to ILOE Dubai insurance?

To access ILOE Dubai insurance, employees can visit the official website of the Dubai Insurance Company, which is the provider of the scheme. From there, they can log in using their account details and access all the necessary information related to their insurance.

Where can I find job loss insurance in UAE?

Job loss insurance is available to both Emiratis and residents working in the federal and private sectors through the Unemployment Insurance scheme. The scheme provides financial support if they lose their jobs as a result of termination by their employers. Employees can subscribe to the scheme through their respective employers.

What is the process if I lose my job in Dubai?

If an employee loses their job in Dubai, they must inform their employer immediately. They can then apply for ILOE insurance or Unemployment Insurance scheme, depending on their eligibility. They will need to provide all the necessary documents and information related to their job loss, including their employment contract, termination letter, and bank details.

Is unemployment insurance available in UAE?

Yes, unemployment insurance is available in UAE through the Unemployment Insurance scheme. The scheme provides financial support to Emiratis and residents working in the federal and private sectors if they lose their jobs as a result of termination by their employers.

Is job loss insurance mandatory in Dubai?

Yes, job loss insurance is mandatory in Dubai for both private sector and federal government employees. The deadline to sign up for the Involuntary Loss of Employment (ILOE) insurance scheme is June 30, 2023. The scheme provides a cash benefit for a limited period of up to three consecutive months per claim in the event of termination.