Khaleej Times, Saturday, Nov 12, 2022 | Rabi Al Thani 17, 1444
New UAE rule: All employees must get job loss insurance from 2023, ministry announces
Emirates:
Purchasing an insurance scheme against job loss will be a mandatory requirement
once the programme goes into effect from January 1, 2023, the Ministry of Human
Resources and Emiratisation (MoHRE) has announced.
Employees of private sector companies and federal government departments can
subscribe to the Unemployment Insurance Scheme from as low as Dh5 per month.
The scheme offers 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.
>> Insurance pool's website (www.iloe.ae) and smart application
>> Bank ATMs and kiosk machines
>> Business service centres
>> Money exchange companies
>> du and Etisalat
>> SMS
Who will provide the insurance?
According to the MoHRE, the scheme will be offered by the Dubai Insurance
Company, which is the representative of the insurance pool consisting nine
companies:
>> Dubai Insurance Company
>> Abu Dhabi National Insurance Company
>> Al Ain Ahlia Insurance Company
>> Emirates Insurance Company
>> National General Insurance Company
>> Orient Insurance
>> Abu Dhabi National Takaful Company
>> Oman Insurance Company
>> Orient UNB Takaful Company
Premiums and compensation
There are two categories:
>> Category 1: Basic salary of Dh16,000 and below
Insurance premium: Dh5 per month
Monthly compensation: Will not exceed Dh10,000
>> Category 2: Basic salary above Dh16,000
Insurance premium: Dh10 per month
Monthly compensation: Will not exceed Dh20,000
How claims are calculated
>> The monthly compensation will be 60 per cent of the average salary over the
most recent 12 months prior to job loss.
>> Maximum compensation for any one claim: Three consecutive months
>> Maximum period of benefits: During the insurance period over the entire work
life of the insured in the UAE, the aggregate claim payment shall not exceed 12
monthly benefits (regardless of the number of claims submitted).
Eligibility criteria
According to the insurance pool's website, in order to be eligible for
compensation, the insured must meet the following criteria:
>> Minimum subscription period is 12 consecutive months.
>> All insurance premiums must have been paid on time.
>> The reason for unemployment should not be resignation.
>> 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.
>> The worker should not have an existing complaint related to absence from
work.
>> The employee will not be entitled for compensation if there has been fraud or
deceit involved in his/her claim.
>> The loss of employment should not be the result of non-peaceful labour
strikes or stoppages.
>> The insured must be legally present in the UAE.
>> The loss of employment should not be the result of one of the following
reasons:
- War, riot, insurrection, armed rebellion, revolution, military or usurping
force, invasion, act of a foreign enemy, hostilities, civil war, or civil
disorder.
- Discharge of pollutants, a nuclear event, a radioactive, toxic, explosive or
other dangerous effect of any explosive nuclear equipment or part of such
equipment.
- Biological or chemical pollution resulting from or contributing to terrorism.
- Direct action by the government of the UAE that led to the expropriation or
nationalisation of the employer’s facility or the confiscation of his/her money,
leading to insolvency.
- Force majeure (unforeseeable circumstances) in accordance with the Civil
Transactions Law.