Involuntary Loss of Employment Scheme
As part of our effort to keep you updated on the latest government laws, we would like to send you a reminder regarding Federal Decree Law No. 13 of 2022 concerning the Involuntary Loss of Employment (ILOE) Scheme.
This unique scheme has been designed to offer security and support to employees who have experienced a job loss for reasons other than disciplinary action or resignation, ensuring assistance until they secure a new job.
The subscription is eligible for UAE nationals and residents working in the federal government and private sector. It is important to note that participation in the scheme is optional for employees of companies operating within the Free Zone.
Under this scheme, eligible employees will receive a monthly cash benefit equivalent of up to 60% of their average basic salaries from the six months preceding the loss of employment, according to the regulations stipulated in the relevant legislation.
The cash benefit will be provided for a maximum of three consecutive months, exclusively for those workers who have paid the monthly premium for a minimum of 12 consecutive months.
