The UAE Ministry of Human Resources and Emiratisation (MoHRE)’s deadline to sign up for the Involuntary Loss of Employment (ILOE) scheme has less than 24 hours remaining for those employees who have not yet subscribed to it.
A fine of Dhs400 will apply on eligible employees who don’t sign up for the mandatory unemployment insurance scheme before the October 1 deadline.
MoHRE had issued a reminder on September 19 that a fine of Dhs400 will apply on eligible employees who don’t sign up for the mandatory unemployment insurance scheme before the October 1 deadline.
All employees in the UAE must enroll with the Unemployment Insurance scheme.
The ministry had extended the deadline from June to October 1 for all employees working in the UAE to subscribe to the scheme.
Who can register?
The terms and conditions of the new law apply to all employees in the federal government and the private sector working in the UAE.
Who cannot register?
The unemployment insurance scheme is an employee requirement only. Employers are not required to register their employees in an insurance scheme, nor are employers required to pay any contributions to the scheme.
The scheme applies to all workers in the private and federal sectors except:
1. Investors, business owners who own and manage their businesses themselves
2. Domestic workers
3. Employees on a temporary basis
4. Juveniles under the age of 18
5. Retirees who receive a pension and have joined a new employer
What happens if an employee fails to register?
Failure by an employee to register by the applicable deadline will lead to fines being imposed. An upfront fine of Dhs400 will be imposed on the employee. After registering for the scheme, if an employee fails to pay the insurance premiums in accordance with the payment periods for more than three months, the insurance certificate will be canceled and a fine of Dhs200 will be imposed.
Where to register?
1. The insurance pool’s website can be accessed at www.iloe.ae and its smart mobile application available for both Android and Apple users
2. Bank ATMs and kiosk machines
4. Money exchange company outlets such as Al Ansari and Lulu Exchange
5. du and Etisalat channels
6. Via SMS