UAE Mandatory Job Loss Insurance Scheme, Deadline near

Several people queued outside money exchange houses on Saturday to register for the UAE’s mandatory job loss insurance scheme on the eve of the deadline.

For instance, this was the scene outside Al Ansari Exchange House in Sharjah’s Rolla area. Al Ansari Exchange is among the several platforms where employees can subscribe to the insurance scheme. 

Similar lines were also reported outside exchanges in other parts of the country. Such were the long queues that some workers could not complete their registration process.

Relief for Workers:

Bilal Ahmed, a cleaner in Sharjah, breathed a sigh of relief after successfully registering at Al Ansari Exchange in Al Nahda. “I was in a state of mind that the deadline was until the end of October. 

I had to wait nearly an hour in the queue to register myself for the Involuntary Loss of Employment Insurance,” said Ahmed. When Bilal was done with registering, he informed many of his friends and colleagues to subscribe to the insurance.

About the Insurance Scheme:

The scheme is a low-cost and easy way for employees to have financial support for a certain period in case of job loss. 

Those who failed to register for the involuntary loss of employment (ILOE) scheme from October 1 will face a fine of Dh400.

Penalties and Fines:

A Dh400 fine is imposed on eligible employees who do not sign up for the scheme before the deadline. A Dh200 fine will be taken from employees who do not pay premiums for more than three months from the due date after subscribing. 

For employees caught taking insurance benefits of the scheme from others, a hefty fine of Dh20,000 will be imposed. 

It is important to remember that employees who don’t sign up for the scheme will face fines and penalties, and not the employers. 

According to the Ministry of Human Resources, unpaid penalties shall be removed from the employee’s salary or end-of-service benefits.

Exceptions to the Scheme:

There are exceptions, however, to those applying to the scheme. 

These have investors, business owners, domestic workers, temporary employees, minors under 18, and retirees who receive a pension and have joined a new employer. 

All federal and private employees, excluding those mentioned above, must register for the scheme and face penalties upon violations.

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