The UAE government has recently implemented a new law, Federal Decree Law No. 13 of 2022, to support employees who have lost their jobs due to economic conditions or company restructuring. This new scheme, called the Involuntary Loss of Employment (ILOE) provides security and financial assistance for employees who lost their job due to reasons other than disciplinary action or resignation, until they find a new job.
This law not only provides security but also compensates employees with a Monthly cash benefit up to 60% of their average basic salaries of the 6 months prior to loss of employment, provided that they have paid the monthly premium for at least 12 consecutive months. The cash benefit will be provided for a maximum of 3 consecutive months for a single claim.
The Involuntary Loss of Employment Scheme is mandatory for all employers in the UAE, and they must contribute to the scheme on behalf of their employees. Employers are also required to inform the Ministry of Human Resources and Emiratization about any employee who is terminated due to economic conditions or company restructuring.
The scheme is a step in the right direction towards supporting UAE workers during tough financial conditions. It offers financial support to those who have lost their jobs, enabling them to meet costs and maintain themselves while searching for new employment. In addition, it offers job search and training assistance to help workers swiftly find new jobs.
To register for the Involuntary Loss of Employment Scheme, employees should register on the ILOE website, which can be accessed by visiting the URL www.iloe.ae.
It’s likely that ILOE have a registration process on their website for employees to complete. This may include creating an account, submitting personal information, and completing other forms or tasks required by the organization.
Employees are strongly advised to carefully read the terms and conditions while registering on the ILOE website. This will ensure that they fully understand the procedures and know what is required of them. By reading the terms and conditions, employees will have access to all the information they need. You can access the terms and conditions by clicking on the link below:
Employers must also register dismissed workers with the MOHRE and provide the relevant information and documents. To access the MOHRE’s online portal, go to the Ministry of Human Resources and Emiratization’s official website at https://www.mohre.gov.ae/. The website contains information on the Involuntary Loss of Employment Scheme as well as other associated services. There are also connections to internet sites where you may register for the plan and submit the required paperwork.
It should be noted that the benefits of this scheme are only offered to UAE nationals and not to expats; moreover, employers are required to register workers who have been dismissed due to economic difficulties or firm restructuring.
Finally, the Involuntary Loss of Employment Scheme is a new regulation in the UAE that is intended to give financial aid and support to workers who have lost their employment due to economic circumstances or company restructuring. The system is mandatory for all UAE employers, and they must contribute to it on behalf of their workers.