Home Jobs UAE Job Loss Insurance: Residents Made Last-Minute Rush to Beat October 1 Deadline

UAE Job Loss Insurance: Residents Made Last-Minute Rush to Beat October 1 Deadline

Exchange Houses Witness Long Queues as Workers Line Up to Enroll in the Insurance Scheme

UAE Job Loss Insurance: Residents Made Last-Minute Rush to Beat October 1 Deadline

On the eve of the deadline for mandatory registration in the UAE’s job loss insurance scheme, numerous people were seen queuing outside money exchange houses across the country. One such location was Al Ansari Exchange House in Sharjah’s Rolla area, where individuals were registering for the scheme. Similar queues were reported at exchanges in other regions, with some individuals unable to complete their registration due to the long lines.

The job loss insurance scheme provides a low-cost means for employees to receive financial support in the event of job loss. Those who failed to register for the Involuntary Loss of Employment Insurance (ILOE) scheme by October 1st would be subject to a fine of AED 400.

While some residents claimed they were unaware of the deadline, authorities had issued multiple reminders that the responsibility for obtaining the insurance rested with employees, not their employers.

The fine for eligible employees who didn’t enroll in the scheme by the deadline was AED 400, while those who failed to pay premiums for over three months from the due date after subscribing faced a AED 200 fine. Employees caught taking insurance benefits from others would incur a substantial fine of AED 20,000.

Employees who didn’t sign up for the scheme would face fines and penalties, and these would be deducted from their salaries or end-of-service benefits. Those who didn’t clear all pending fines related to the insurance scheme wouldn’t be allowed to apply for a new work permit.

Exceptions to the scheme included investors, business owners, domestic workers, temporary employees, minors under 18, and retirees receiving pensions and joining new employers. All other federal and private employees were required to register for the scheme and would face penalties for violations.

The unemployment insurance scheme had two categories: employees with salaries of AED 16,000 and below had a monthly premium of AED 5 and a maximum monthly compensation of AED 10,000, while those with salaries exceeding AED 16,000 paid AED 10 per month with a maximum monthly compensation of AED 20,000. To be eligible for insurance benefits, employees had to subscribe to the scheme for at least 12 consecutive months, with benefits calculated at 60% of the average basic salary in the six months before unemployment, payable for a maximum of three months per claim. Termination for disciplinary reasons or resignation would disqualify an employee from receiving benefits.

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