Speaking to Khaleej Times, the ministry said that private sector companies must provide accurate data while applying for cancellation of work permit to avoid legal action.
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Four months after starting work, Dubai resident Syed Ahmed faced a double blow: he was fired during the probationary period and then denied his job loss insurance claim. An oversight by his employer left him dealing with uncertainty and financial difficulties.
As a subscriber to the involuntary loss of employment (ILOE) scheme, Syed hoped the insurance would support him over the coming months. Under the scheme, subscribers are entitled to up to 60 per cent of their average basic salary for the six months prior to losing employment. Eligible employees who have paid monthly premium for at least 12 consecutive months will receive this cash benefit for up to three consecutive months.
However, a mistake can deprive an employee of job loss benefits, causing them to lose the monthly cash support that insurance promises.
employer supervision
“As if the impact of losing a high-paying job wasn’t enough, I was informed of a discrepancy and therefore was not entitled to benefits. I felt helpless, not knowing who to turn to for a solution,” Syed said. Khaleej Timesexpressing the frustration he felt.
The Indian expatriate said: “The letter sent to me by the company said it was a dismissal, while the employment cancellation letter sent to the Ministry of Human Resources and Emiratization (Mohre) showed that I had resigned. It was an oversight by the company. company during my visa. employment cancellation letter, which I had signed.”
Struggling to clear up the discrepancy, Syed went back and forth between his company and ILOE, run by Dubai Insurance, seeking a solution to this conundrum.
“The OITE informed me that Mohre’s file replaced the company’s dismissal letter, which means my application will be rejected. I desperately needed the money to stay in the country and look for another job. I contacted the company, But there was no clear way to proceed and no one seemed to know what to do.”
The company admitted its unintentional mistake and tried to help Syed, contacting Mohre and Tasheel to resolve the situation. Here is a copy of the email they sent to ILOE, stating the confusion and providing supporting documents:
Companies risk legal action
In a statement to Khaleej TimesMohre urged private sector companies to provide accurate data when laying off employees to avoid irregularities and legal action.
“Mohre is able to detect anomalies and take action against employers who fail to provide accurate information. This, in turn, allows employees to receive the maximum benefit from Unemployment Insurance, provided they meet the required conditions, which include not having resigned from their employment voluntarily or having been dismissed for disciplinary reasons.”
The Ministry said that any discrepancy between the actual reason for termination of employment and the information provided to the Ministry would be considered as the company providing false information, which would trigger an investigation and could lead to legal action against the company. If the violation is confirmed, a fine will be imposed on the company before being referred to the Public Ministry to complete the criminal procedure.
Understanding the relatively new ILO process can be complicated for both employers and employees. Sara Khoja, partner at Clyde and Co, a Dubai-based law firm, explained: “ILOE is a new scheme and as such, employees and employers are still familiarizing themselves with its requirements and the process for claiming the benefit. for unemployment. The scheme was introduced in 2023 and required the individual to have contributed for a minimum period of 12 months.
“In addition, employees can only claim the benefit if their visa has been canceled and the reason for dismissal is not attributable to the employee himself (for example, resignation). Therefore, it is important that the employer and employee provide information consistent with this position to allow the individual to claim the benefit.”
In Syed’s case, it took several calls and email exchanges with various authorities, but with the 30-day deadline about to expire, Syed finally received good news from the ILO. After careful review of his case, they approved the claim. (screenshot below):
How to resolve accidental errors
In the event of inadvertent errors when entering the reason for a worker’s dismissal, which would have prevented said worker from receiving unemployment compensation, Mohre clarified that it is not necessary for the worker to file a labor complaint or request technical support to modify the dismissal document. . .
“In such cases, it is enough to provide the dismissal letter, which clearly states that the company initiated the dismissal of the worker and attach said letter to the compensation request submitted through the Unemployment Insurance portal.”
To make the process smooth, Sara advised employers to “consult with ILOE before submitting any visa cancellation request about their requirements for each employee to ensure that the employee will not be affected when claiming compensation. At the same time, Before making any application to Mohre, Employers should advise that the individual intends to claim insurance under this scheme, as Mohre officials can also advise them accordingly.”
The Ministry also urged employers and workers to examine the information and guidelines on the plan, available on the Insurance Pool website www.iloe.ae, or by contacting the call center 600599555 to inquire about any procedure related to subscription and compensation.
Finally, in the event that the worker faces difficulties in claiming ILOE insurance, the worker can submit the request to the Ministry, which will investigate the case and enforce a resolution.
Benefits and eligibility
The unemployment insurance plan is divided into two categories:
The first covers those with a basic salary of Dh16,000 or less, where the insurance premium is set at Dh5 per month and the maximum monthly compensation at Dh10,000.
The second category includes those with a basic salary above Dh16,000, where the insurance premium is Dh10 per month and monthly compensation is capped at Dh20,000.
Insurance compensation can be claimed as long as the employee has been subscribed to the plan for at least 12 consecutive months. The claim will be processed within two weeks of submission. The employee will not receive compensation if he cancels his residency and leaves the country or accepts a new job.
Compensation is paid for a maximum of three months from the date of unemployment for each claim, provided that the worker in question has not been dismissed for disciplinary reasons and has not resigned.
