The UAE has announced an extension to the registration deadline for the mandatory job loss insurance scheme. The new deadline, previously set for June 30, has been extended to October 1, 2023. Failure to register by the revised deadline will result in a fine of AED400 for employees.
The Ministry of Human Resources and Emiratisation (MoHRE) introduced the mandatory job loss insurance, also known as the Involuntary Loss of Employment (ILOE), on January 1, 2023. The scheme applies to employees in the private sector, federal government, and free zones. Initially, employees were given from January to June to subscribe to the scheme, with penalties for non-compliance.
However, certain categories are exempted from the scheme, including investors, domestic workers, temporary contract workers, residents under the age of 18, and retirees earning a retirement pension who have secured new employment.
Approximately 4.6 million employees have subscribed to the job loss insurance scheme since its launch in January. The deadline extension offers a reprieve, particularly for blue-collar workers, allowing them additional time to register for the scheme.
It is important to note that subscribing to the job loss insurance scheme is the responsibility of the employee, not the employer, as outlined by the MoHRE guidelines.
The cost of the insurance is AED5 per month, plus VAT. Employees earning a monthly salary below Dh16,000 can subscribe on a monthly, quarterly, semi-annually, or annual basis. For those earning Dh16,000 or more, the monthly fee increases to AED10. Employees have the option to choose from the available payment intervals. Additional insurance benefits are also available for subscribers.
Under the scheme, employees who experience non-disciplinary termination can receive cash compensation for three months, amounting to 60 percent of their average basic salary over the six months prior to termination.
To be eligible for compensation, subscribers must be registered in the scheme for a minimum of 12 consecutive months and submit an application within 30 days of leaving employment, provided their departure was not due to disciplinary reasons, resignation, or fraudulent claims. Compensation will cease if the employee secures new employment or leaves the country.
Workers who have not yet subscribed to the job loss insurance scheme can do so through various channels, including the insurance pool website www.iloe.ae, mobile app, ATMs, business service centers, Al Ansari Exchange, banking applications, telecom companies’ bills, and text messages.
UAE extends deadline for mandatory unemployment insurance registration
Source: Pinoy News Udpates PH
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