The UAE has prolonged the registration deadline for the mandatory job loss insurance scheme until October 1, 2023, instead of the previous date of June 30.
The Ministry of Human Resources and Emiratisation (MoHRE) has indicated that employees who do not complete their registration by October 1 will be subject to a fine of Dh400.
The Involuntary Loss of Employment (ILOE), a required insurance policy, was introduced on January 1, 2023, encompassing employees in the private sector, the federal government, and free zones. These workers were provided a subscription window from January to June, and those who didn't subscribe within this period will face penalties.
The scheme excludes investors, local household staff, temporary contract laborers, individuals under 18, and retirees who are both receiving a pension and starting new employment.
Since January, 4.6 million workers have enrolled in the program. The extension brings relief, particularly to manual laborers, affording them extra time to join the initiative.
As outlined by MoHRE guidelines, enrolling in the job loss insurance plan is the obligation of the employee, not the employer.
Costing Dh5 per month plus VAT, employees with a monthly income below Dh16,000 have the option to subscribe on a monthly, quarterly, semi-annual, or annual basis. Those earning over Dh16,000 in basic salary are required to pay Dh10 per month, with the flexibility to select from the provided payment frequency options. Workers retain the right to opt for supplementary insurance benefits.
Upon job loss, the employee becomes eligible for cash compensation spanning three months, commencing from the employment termination date. This compensation totals 60% of their average basic salary over the preceding six months, as long as the termination was non-disciplinary.
To qualify for compensation claims, subscribers need a minimum consecutive 12-month registration in the scheme. Furthermore, they must submit a compensation application within 30 days of leaving their job, provided their departure wasn't due to disciplinary reasons, resignation, or fraudulent claims.
Compensation will cease upon securing new employment or leaving the country.
For those yet to subscribe, avenues to do so include the insurance pool's website, mobile app, ATMs, business service centers, Al Ansari Exchange, banking apps, telecom company bills, and text messages.
News Source: Khaleej Times