Companies promote job loss insurance scheme

Companies in the UAE are encouraging as well as enrolling their employees on the job loss insurance scheme, which came into effect on January 1, 2023.

The UAE made it mandatory for Emirati and expat employees working in the private and federal government departments to subscribe to the Involuntary Loss of Employment (ILOE) insurance scheme before June 30, failing which they will be subject to a Dh400 fine.

Employees working in the UAE's free zones are currently exempt from subscribing.

The insurance programme does not cover investors, such as owners of the establishments in which they work, domestic helpers, part-time employees, workers under the age of 18 and retirees who receive a pension and have joined a new job.

The ministry said more than 60,000 workers in the UAE have subscribed to the scheme in its first two days of operation. It said 96 per cent of participants chose to subscribe to the scheme annually.

Companies can also pay premiums on behalf of their employees and can either deduct them later from their salaries or contribute to the scheme as an incentive.