What is the Involuntary Job Loss Scheme?

The Involuntary Job Loss Scheme is a type of safety net. It provides financial assistance to people who have lost their jobs through no fault of their own. For example, if your company closes, or your employer lets you go due to business problems, you can get assistance from this scheme.

The scheme does not help people who leave their jobs intentionally or are fired due to poor performance or breaking rules. It only supports people who are affected by factors beyond their control.

Who can apply?

The scheme covers most workers in the UAE, including those working in the private and federal government sectors. However, it does not include:

• Domestic workers

• Temporary employees

• Investors or business owners

• People under 18

• Retirees who are receiving a pension and have started a new job

If you are a full-time worker with a valid UAE work visa, there is a good chance that this scheme will apply to you.

How does it work?

The ILOE scheme works like an insurance scheme. Workers pay a small monthly fee, and if they lose their job, they receive a monthly payment for a limited period.

There are two categories under this scheme:

Category 1: If your basic salary is AED 16,000 or less, you pay AED 5 per month (or AED 60 per year). If you lose your job, you can receive up to AED 10,000 per month.

Category 2: If your basic salary is more than AED 16,000, you pay AED 10 per month (or AED 120 per year). You can get up to AED 20,000 per month.

You must subscribe to this scheme for at least 12 months to claim. You can get payments for up to three months, and it is to help you meet your basic needs while you look for a new job.

How to subscribe?

Subscribing to this scheme is easy and only takes a few minutes. You can do it through:

• ILOE website

• Mobile apps

• Business service centers

• Money exchange centers

• Telecom providers such as du and Etisalat

You will need your Emirates ID and some basic job details. Once you subscribe, you will need to pay a monthly or annual fee, depending on the option you choose.

When and how to claim?

If you lose your job, you must file your claim within 30 days of your last working day. You can submit your claim through the same platform where you registered.

To be eligible for payment:

• You must not have been fired for breaking company rules.

• You must not have resigned.

• You must have paid your insurance premiums on time.

• You must have worked under the scheme for at least 12 months.

If your claim is approved, you will receive your monthly payment within two weeks.

Why is this scheme important?

The scheme gives workers peace of mind. It makes it easier to focus on finding a new opportunity, knowing that you will have some financial support if you lose your job. It also shows how the UAE government supports both businesses and employees in difficult times.

Tips for workers

Make sure to register before the deadline to avoid any penalties.

Have your proof of payment and employment documents ready in case you need to make a claim.

Update your contact information, so you don’t miss any important messages from the scheme.

Is this a good time to start your own business?

Losing a job can also be an opportunity to start a new life. Many people use this time to start their own companies. Dubai is one of the best places in the world to start a new business. If you are thinking of taking this step, you should talk to a trusted business setup company in Dubai. They can guide you through the regulations, paperwork and other requirements so you can focus on your dream.

One such expert is DBS Business Setup Group. They help people like you start and grow a business in Dubai with less stress and more confidence.