Three-Month Cash Benefits Available for UAE Residents Facing Job Loss
According to Dana Kansou, the Manager of Strategic Partnerships at Dubai Insurance, some UAE citizens who joined in the required job loss insurance program in January 2023 are now eligible to receive monthly cash compensation in the event of unemployment.
Renewing the policy is obligatory to maintain financial protection against job loss, with failure to renew subject to a Dh400 fine.
To be eligible for compensation, individuals must have been subscribed to the Involuntary Loss of Employment (ILOE) scheme for at least 12 months. Claimants can submit their claims through the ILOE website within 30 days of the termination of their labor relationship, providing evidence that they did not resign or get fired for disciplinary reasons. Leaving the country or securing new employment disqualifies individuals from claiming compensation.
The insurance company has two weeks from the date of filing a claim to credit the insured person's account with the compensatory amount. The claimant will get compensation for three months or until they find new employment, whichever comes first. The compensation is computed as 60% of the average basic pay in the six months prior to unemployment.
The process to claim compensation involves logging into the ILOE website, clicking on'submit a claim,' entering the Emirates ID and a valid UAE phone number, and following the steps to submit the claim.
Kansou emphasized the importance of renewal to avoid the cancellation of the insurance certificate. Those who signed up in January 2023 are now eligible for compensation, marking the beginning of the scheme's implementation.
The introduction of monthly cash benefits for job loss, coupled with mandatory insurance, aims to provide financial support and security to employees facing unemployment. It is part of the broader efforts to enhance the social security net and address challenges associated with job loss in the UAE.