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Unemployment Insurance (ILOE): Who is Eligible and How to Claim

Unemployment Insurance (ILOE): Who is Eligible and How to Claim

Claiming Unemployment Insurance (ILOE) is a right available to every insured employee who loses their job for a reason unrelated to resignation or misconduct, provided the eligibility conditions set out in Federal Decree-Law No. (13) of 2022 on the Unemployment Insurance Scheme are met. This guide explains who is covered by the scheme and who is excluded, the conditions for benefit eligibility, the two subscription categories and their compensation amounts, and the steps and legal deadline for submitting a claim.

Was your unemployment insurance claim rejected, or do you need your eligibility reviewed?

Overview of the Unemployment Insurance Scheme and Who It Covers

Federal Decree-Law No. (13) of 2022 established a mandatory scheme to compensate the insured employee with a cash benefit for a limited period in the event of unemployment, covering all employees in the UAE federal government sector and the private sector.

Categories excluded from the scheme: Investors (business owners working in their own establishment), domestic workers, employees on temporary work contracts, juveniles under the age of 18, and pensioners who have taken up new employment.

Conditions for Benefit Eligibility

Federal Decree-Law No. (13) of 2022 and Cabinet Resolution No. (97) of 2022 set out detailed conditions for benefit eligibility, most notably:

  • The insured's subscription period in the unemployment insurance scheme must not be less than twelve consecutive months.
  • Commitment to paying all insurance instalments according to the specified periodicity.
  • Proof that the insured's unemployment is for a reason other than resignation.
  • The insured must not have been dismissed for disciplinary reasons under the labour relations law in the private sector or the human resources law in the federal government.
  • The claim must be submitted within thirty days from the date the employment relationship ended, or from the date a labour dispute referred to the judiciary is resolved.
  • There must be no pending work-absence complaint against the insured.
  • The claim must not be fraudulent, and the employer must not be a fictitious establishment.
  • Job loss must not result from non-peaceful strikes or labour stoppages.
  • The insured must be legally present in the country.
  • Job loss must not result from a state-declared emergency such as war, riots, civil unrest, radioactive or nuclear contamination, biological or chemical contamination caused by a terrorist act, or the expropriation or nationalisation of the employer's establishment.

Subscription Categories and Premium and Compensation Amounts

The insurance premium and the maximum monthly compensation are determined according to the subscription salary (basic salary), as follows:

CategorySubscription SalaryMonthly PremiumMaximum Monthly Compensation
Category OneAED 16,000 or lessNo more than AED 5AED 10,000
Category TwoMore than AED 16,000No more than AED 10AED 20,000

Compensation is calculated monthly at 60% of the subscription salary, based on the average basic salary over the six months preceding unemployment, for a maximum of three months per claim, provided that the total benefit period over the insured's entire working life in the UAE does not exceed twelve months.

Steps for Submitting a Claim and the Legal Deadline

Submitting the claim: The insured submits the claim to the insurance service provider within thirty days from the date the employment relationship ended, or from the date a labour dispute referred to the judiciary is resolved.

Claim review and payment: The insurance service provider must review the claim and transfer the compensation amount within no more than two weeks from the date of receiving a claim complete with the required documents.

Claim channels: The unemployment insurance website, its dedicated smart application, the designated call centre, and any other channels specified by the Ministry of Human Resources and Emiratisation in coordination with the insurance pool.

Cases Where Compensation Payment Stops or Coverage Ends

  • Compensation payment stops if the insured takes up another job during the entitlement period.
  • Insurance coverage ends upon reaching the total maximum compensation payable over the insured's entire working life in the UAE.
  • Insurance coverage ends on the date of the insured's death.
  • No previously paid insurance instalments are refunded if the insurance policy is cancelled.

Key Legal Deadlines

  • 12 months: the minimum period of continuous subscription before compensation eligibility.
  • 30 days: the deadline for submitting a claim from the date the employment relationship ends or a labour dispute is resolved.
  • Two weeks: the maximum period for the insurance service provider to pay compensation after receiving a complete claim.
  • 3 months: the maximum compensation period per individual claim.
  • 12 months: the maximum total benefit period over the insured's entire working life in the UAE.

Practical Tips for Submitting a Claim

  • Verify that your subscription has been continuous for twelve months before becoming unemployed.
  • Submit your claim promptly, within thirty days of the end of your employment relationship, to avoid losing your entitlement.
  • Keep evidence of the reason your employment ended, showing it was not a resignation or disciplinary dismissal.
  • Make sure there is no pending work-absence complaint against you before applying.
  • Check your subscription category and registered subscription salary to ensure your compensation is calculated correctly.

Legal References

  • Federal Decree-Law No. (13) of 2022 on the Unemployment Insurance Scheme
  • Cabinet Resolution No. (97) of 2022 on the Mechanisms and Controls for Implementing the Unemployment Insurance Scheme
  • Ministerial Resolution No. (604) of 2022 on the Unemployment Insurance Scheme
  • Ministerial Resolution No. (340) of 2023 Amending the Deadline for Imposing Fines Related to the Unemployment Insurance Scheme
Was Your Unemployment Insurance Claim Rejected?
The team at AWADH ALMHEIRI LAW FIRM AND LEGAL CONSULTATIONS is ready to review your eligibility, follow up on your claim with the insurance service provider, and represent you in any dispute related to unemployment insurance.
Contact Us Today for Specialised Legal Advice

Frequently Asked Questions

?Who is excluded from the unemployment insurance scheme?
Investors (business owners working in their own establishment), domestic workers, employees on temporary work contracts, juveniles under 18, and pensioners who have taken up new employment are excluded.
?How long must I have subscribed to be eligible for compensation?
No less than twelve consecutive months in the unemployment insurance scheme, with all instalments paid according to the specified periodicity.
?What is the maximum monthly compensation amount?
AED 10,000 per month for Category One (subscription salary of AED 16,000 or less), and AED 20,000 per month for Category Two (subscription salary above AED 16,000), for a maximum of three months per claim.
?What is the legal deadline for submitting a claim?
Thirty days from the date the employment relationship ends, or from the date a labour dispute referred to the judiciary is resolved, if applicable.
?When does compensation payment stop?
Compensation payment stops if the insured takes up another job during the entitlement period, upon reaching the maximum coverage limit, or upon the insured's death.
?Are insurance instalments refunded if the policy is cancelled?
No. No previously paid insurance instalments are refunded if the insurance policy is cancelled for any reason.
Legal Disclaimer
This content is general information and does not substitute for specialised legal advice, nor should it be relied upon as a substitute for the text of Federal Decree-Law No. (13) of 2022, Cabinet Resolution No. (97) of 2022, their implementing ministerial resolutions, and any updates issued by the competent authorities. The Arabic version of this content shall prevail in case of any discrepancy. To determine your exact legal position, please Contact Us.

AWADH ALMHEIRI LAW FIRM AND LEGAL CONSULTATIONS is the first destination for anyone seeking an unemployment insurance lawyer in Dubai or an ILOE claims specialist. We provide specialised labour law services including reviewing compensation eligibility conditions, following up on rejected claims with the insurance service provider, and representing employees in unemployment insurance disputes. Whether you are looking for the best labour lawyer in Dubai or a legal consultant for an unemployment insurance claim, our team is ready to provide comprehensive legal advice that protects your rights.

AWADH ALMHEIRI LAW FIRM AND LEGAL CONSULTATIONS's legal services in the field of unemployment insurance are not limited to the Emirate of Dubai. We provide labour lawyer and ILOE claims specialist services across all emirates of the country without exception, from Abu Dhabi to Sharjah, Ajman, Umm Al Quwain, Ras Al Khaimah, and Fujairah. Our team has the legal expertise needed to review your entitlements, follow up on your claims, and represent you in any dispute related to unemployment insurance before the competent authorities in each of the seven emirates.