The UAE's unemployment insurance scheme, launched two years ago, has become a critical safety net for workers. It has about nine million subscribers, with almost seven million of them signing up in the first year, according to the Ministry of Human Resources and Emiratisation.
The Involuntary Loss of Employment programme (ILOE) pays employees who lose their jobs up to 60 per cent of their basic salary for a maximum of three months, or until they find new employment, whichever is sooner.
It is mandatory for all Emiratis and expat employees in private and public sector jobs and in free zones, with a fine of Dh400 ($108) for those who do not pay the premiums or renew their policy.
The scheme’s aim is not just to support the unemployed but also to attract and retain global talent. However, certain oversights can disqualify employees from claiming benefits.
Understanding the rules and avoiding common mistakes are vital to ensuring financial security during unexpected employment gaps.
12-month lock-in
A key requirement of the unemployment insurance scheme is the 12-month lock-in period. Employees must remain enrolled for a full year to be eligible for benefits. This can span multiple employers if payments are made consistently.
Nida Al Masri, consultant at Justitia Advocates and Legal Consultants, explained: “Simply paying the insurance in full doesn’t entitle a person to the benefits if the mandatory time period has not been completed.”
The minimum commitment period aims to prevent fraud or misuse of the insurance system. “For example, if someone is aware their employment may end for whatever reason, they could [otherwise] pay the insurance in full and then claim the compensation,” Ms Al Masri said. “The law specifies such timeframes to ensure commitment and stability for the insurer and the insured.”
A Jordanian employee of a public relations company in Dubai, who wished to keep her identity anonymous, lost out on the compensation after failing to complete the 12-month mandatory period. She registered last May after initially forgetting to do so, and even paid a fine for late enrolment. However, when she lost her job, she said she could not access the benefits.
Speaking to the The National, she said she regretted not reading the fine print. “If I had received the insurance payout, it would have eased my worries, especially with three children in school, fees to cover, rent and other living expenses,” she said.
Ms Al Masri said such employees might be able to explore legal channels to request a refund. “Since this is a relatively new concept, there may not yet be a specific legal provision addressing this scenario. In such cases, we rely on civil laws, which generally state that retaining funds unlawfully acquired from others is impermissible.”
Know your rights
Recruitment expert Claire Donnelly believes employees are still not fully aware that they are responsible for registering with the ILOE programme. “I don't think it's particularly well-known,” she said.
Linking the insurance to the visa process and increasing the scheme's validity to two years could ensure compliance, she added. “This would make sure it happens, and employers would have control over it,” she explained. “The main problem for employers is having to chase people to make sure they've got it. It's not [employers'] responsibility, but it's something they need to educate employees on.”
Ms Donnelly added that part-timers must register because they are categorised as permanent employees. “As for freelancers, only if they are on a long-term freelance with an employer will they need to enrol.”
How to claim compensation
- Employees must subscribe to the programme by registering on the official website, or via its smart app, the employee’s bank, ATMs, money exchange companies, business service centres, kiosk machines, du and Etisalat or directly with an insurance company.
- Renewals can be completed using the same channels.
- Eligible people can claim benefits after a minimum of 12 months of enrolment.
- They need to prove their dismissal was beyond their control and not due to disciplinary reasons or resignation.
- Claims must be filed within 30 days of job loss through the official website. Individuals must log in using their Emirates ID and mobile phone number.
- After cancelling their work permit, they need to submit their claim by confirming the cancellation reason and choose their preferred payment method.
- They will receive updates via their registered email and mobile number. They can also track the status in the “My Claims” section of their account.
- Payouts are processed within two weeks of filing a claim.
How much does the insurance cover cost?
The cost of the insurance programme is divided into two categories. The cost for employees earning a basic salary of Dh16,000 or less a month has been set at Dh5 per month, or Dh60 annually.
Meanwhile, workers who earn a monthly basic salary of Dh16,000 or more will pay Dh10 per month, or Dh120 a year.
What job protection does the region offer?
The UAE's unemployment insurance is similar to systems in place in Bahrain and Saudi Arabia.
In Bahrain, unemployment insurance was introduced in 2006 and provides benefits to unemployed Bahrainis and expatriates, including first-time job seekers. The system is funded through a three per cent contribution on wages, equally split between employers, employees and the government.
Saudi Arabia has provided unemployment benefits since 2011. However, its insurance scheme is only targeted at unemployed Saudi nationals, including first-time job seekers and people with disabilities aged between 20 and 35.
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THE BIO
Born: Mukalla, Yemen, 1979
Education: UAE University, Al Ain
Family: Married with two daughters: Asayel, 7, and Sara, 6
Favourite piece of music: Horse Dance by Naseer Shamma
Favourite book: Science and geology
Favourite place to travel to: Washington DC
Best advice you’ve ever been given: If you have a dream, you have to believe it, then you will see it.
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Started: 2016
Founders: Hussein Nasser Eddin, Laila Akel, Tayeb Akel
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Sector: Technology, Security
# of staff: 13
Investment: $745,000
Investors: Palestine’s Ibtikar Fund, Abu Dhabi’s Gothams and angel investors
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Top New Zealand cop on policing the virtual world
New Zealand police began closer scrutiny of social media and online communities after the attacks on two mosques in March, the country's top officer said.
The killing of 51 people in Christchurch and wounding of more than 40 others shocked the world. Brenton Tarrant, a suspected white supremacist, was accused of the killings. His trial is ongoing and he denies the charges.
Mike Bush, commissioner of New Zealand Police, said officers looked closely at how they monitored social media in the wake of the tragedy to see if lessons could be learned.
“We decided that it was fit for purpose but we need to deepen it in terms of community relationships, extending them not only with the traditional community but the virtual one as well," he told The National.
"We want to get ahead of attacks like we suffered in New Zealand so we have to challenge ourselves to be better."
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Normal People
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What are NFTs?
Are non-fungible tokens a currency, asset, or a licensing instrument? Arnab Das, global market strategist EMEA at Invesco, says they are mix of all of three.
You can buy, hold and use NFTs just like US dollars and Bitcoins. “They can appreciate in value and even produce cash flows.”
However, while money is fungible, NFTs are not. “One Bitcoin, dollar, euro or dirham is largely indistinguishable from the next. Nothing ties a dollar bill to a particular owner, for example. Nor does it tie you to to any goods, services or assets you bought with that currency. In contrast, NFTs confer specific ownership,” Mr Das says.
This makes NFTs closer to a piece of intellectual property such as a work of art or licence, as you can claim royalties or profit by exchanging it at a higher value later, Mr Das says. “They could provide a sustainable income stream.”
This income will depend on future demand and use, which makes NFTs difficult to value. “However, there is a credible use case for many forms of intellectual property, notably art, songs, videos,” Mr Das says.
Conflict, drought, famine
Estimates of the number of deaths caused by the famine range from 400,000 to 1 million, according to a document prepared for the UK House of Lords in 2024.
It has been claimed that the policies of the Ethiopian government, which took control after deposing Emperor Haile Selassie in a military-led revolution in 1974, contributed to the scale of the famine.
Dr Miriam Bradley, senior lecturer in humanitarian studies at the University of Manchester, has argued that, by the early 1980s, “several government policies combined to cause, rather than prevent, a famine which lasted from 1983 to 1985. Mengistu’s government imposed Stalinist-model agricultural policies involving forced collectivisation and villagisation [relocation of communities into planned villages].
The West became aware of the catastrophe through a series of BBC News reports by journalist Michael Buerk in October 1984 describing a “biblical famine” and containing graphic images of thousands of people, including children, facing starvation.
Band Aid
Bob Geldof, singer with the Irish rock group The Boomtown Rats, formed Band Aid in response to the horrific images shown in the news broadcasts.
With Midge Ure of the band Ultravox, he wrote the hit charity single Do They Know it’s Christmas in December 1984, featuring a string of high-profile musicians.
Following the single’s success, the idea to stage a rock concert evolved.
Live Aid was a series of simultaneous concerts that took place at Wembley Stadium in London, John F Kennedy Stadium in Philadelphia, the US, and at various other venues across the world.
The combined event was broadcast to an estimated worldwide audience of 1.5 billion.
