In the United Arab Emirates, job loss claims are beginning to surface under the groundbreaking ‘Involuntary Loss of Employment’ (ILOE) program that launched on January 1. However, these claims will continue to be rejected until the first 12 months of the policy is complete. Currently, the number of policyholders is close to reaching 3.4 million, with new registrations expected to accelerate as the June 30 deadline approaches.
“First payments against a job loss will effectively start from January 2, 2024 – all submissions until then will not be covered,” explained Dana Kansou, Manager for the ILOE Insurance Pool. According to the policy, no exceptions can be made to the terms.
This job loss policy, part of the UAE government’s reforms in the employment sector, has seen substantial adoption rates. As of now, it counts nearly 3.4 million policyholders, the majority of which are from the private sector. All UAE employees, including citizens, are required to sign up for the scheme by June 30, with penalties imposed on those who fail to comply.
For individuals with a basic salary of Dh16,000 or less, in the event of job termination, they will receive up to Dh10,000 for up to three months. For those with basic salaries above Dh16,000, the payout would be up to Dh20,000 for the same period.
The UAE has facilitated multiple channels for policy registration, including a dedicated website and app, Al Ansari exchange outlets, bank apps, business centers, kiosks under Upay, and ATMs through C3 Pay.
However, Dana emphasizes the importance of signing up and maintaining monthly payments. “Any payment miss by the individual risks the chances of a policy lapse. Policyholders must keep in mind that these are linked to the status of their Emirates ID and not to the labour contract.”
Eligible (ex-)employees will receive cash compensation equal to 60% of their average basic salary in the six months prior to the job loss. If they secure a new job, the previous policy will lapse and they will need to acquire a new one tied to their updated employment status.
