UAE: Global Mobility 

Introduction

The Ministerial Resolution No. 340 of 2023 was issued on 15 June 2023 extending the deadline for the mandatory registration to the Unemployment Insurance/Involuntary Loss of Employment (ILOE) scheme. The ILOE scheme was introduced by the UAE Federal Government through Federal Decree-Law No. 13 of 2022 in the last quarter of 2022.

Scope

All employees of the private sector, government, free zones and semi-government entities

UAE's ILOE scheme

1.    Eligibility

• Loss of job must not be due to resignation, disciplinary action, and fraud or deceit

2.    Subscription Deadlines

• Employed before 01 Jan 2023: By 30 Jun 2023
• Employed starting 01 Jan 2023: Within 4 months

“As per the recent resolution1, the deadline is extended to 1 October 2023

3.    Premium payments

Monthly basic salary of:

• Up to AED 16,000: AED 5 per month
• More than AED 16,000: AED 10 per month

4.    Obligation to register and support

• Registration and payment to the ILOE scheme is the employee’s responsibility.
• Employers must inform and communicate this scheme to their employees.

5.    Penalties

• Late or non-subscription: AED 400
• Failure to pay premiums for more than 3 months: AED 200

6.    Cash Benefit

• Monthly cash benefit of up to 60% of the employee’s average basic salary² shall be provided for maximum 3 consecutive months. The premium must be paid for at least 12 consecutive months.

1.     Ministerial Resolution No. 340 of 2023

2.     Average basic salary for the 6 months prior to loss of employment.

How can Crowe help?

• Assist clients and/or their employees in assessing the applicability followed by compliance with the applicable regulations.