UAE Outlines Key Rules to Qualify for Involuntary Loss of Employment Compensation

Under the UAE Unemployment Insurance Scheme, governed by Federal Decree-Law No. 13 of 2022 and Cabinet Resolution No. 97 of 2022, employees who lose their jobs must meet strict criteria to qualify for cash compensation through the Involuntary Loss of Employment (ILOE) program.

According to regulatory guidelines, claimants must have maintained continuous subscription to the ILOE scheme for at least 12 consecutive months without an interruption exceeding three months, and all insurance premiums must have been paid according to the agreed schedule.

Compensation applies strictly to involuntary unemployment. Workers who voluntarily resign, those dismissed for disciplinary infractions under UAE labour legislation, or individuals facing absconding complaints are ineligible for benefits. Furthermore, claims must not involve fraud, and the employing entity cannot be fictitious.

Eligible beneficiaries must file their claims through official ILOE channels within 30 days of work permit cancellation or final judicial rulings on labour disputes, while maintaining legal residency in the UAE. Once approved, the scheme pays 60 percent of the employee's average basic salary over the preceding six months for up to three consecutive months, subject to statutory category caps.