The United Arab Emirates (UAE) is ushering in a mandatory job loss insurance scheme known as the Involuntary Loss of Employment (ILOE) program, with a rapidly approaching deadline for employee enrollment. Private sector workers, federal government employees, and those in free zones must register for the ILOE scheme by October 1, or face penalties. Approximately 5 million individuals have already signed up for this low-cost job security net, designed to provide financial support during periods of unemployment.

Fines will be levied for non-compliance: a Dh400 fine awaits employees who fail to enroll by the October 1 cutoff, and those who subscribe but neglect to pay premiums for over three months from the due date may face a Dh200 penalty. To enforce these fines, the UAE’s Ministry of Human Resources and Emiratisation (MoHRE) can deduct the amounts from wages through the Wage Protection System, end-of-service gratuity, or other acceptable methods. It’s important to note that non-payment of fines can impact an individual’s eligibility for a new work permit in the UAE until all dues are cleared within the specified timeframe.

However, certain categories are exempt from this scheme, including company owners, domestic helpers, temporary contract workers, juveniles under 18, and retirees receiving a pension who have started a new job. To subscribe, employees can use various channels, including the ILOE website and app or authorized service centers. The scheme provides financial support for up to three months to eligible individuals who lose their jobs for reasons other than disciplinary actions or resignations, with compensation levels determined by their salary category.