The clarification, reported by Emarat Al Youm on November 11, 2026, concerns the conditions applicable when eligible employees lose their jobs for reasons beyond their control.

The scheme provides temporary financial protection to insured workers, helping them manage essential expenses while they seek alternative employment opportunities.

However, employees do not automatically qualify for compensation simply because their employment has ended, as eligibility depends on complying with the applicable insurance and legal requirements.

The first major requirement is that an employee must have completed at least twelve consecutive months of subscription to the unemployment insurance scheme and maintained the required premium payments.

Employees must also demonstrate that their employment ended through an employer’s decision rather than voluntary resignation or dismissal for disciplinary reasons under the relevant legislation.

Another requirement prohibits fraudulent or deceptive claims, including situations involving fictitious establishments created or used to obtain insurance benefits unlawfully.

Compensation payments must also stop if the insured employee starts another job during the period for which unemployment benefits would otherwise be payable.

A particularly important condition concerns the deadline for submitting an insurance claim, which is generally thirty days from the actual termination of the employment relationship.

This deadline should not automatically be calculated from the date a work permit is cancelled, as the relevant date is determined by the termination circumstances and applicable procedures.

Different timing provisions may apply when an employment dispute has been referred to the courts, including the requirement to submit a claim after the judicial dispute is resolved.

Employees must therefore review their individual circumstances carefully and avoid missing the filing period prescribed under the policy terms.

The ministry also clarified that employees are not eligible when unemployment results from non-peaceful labor strikes or stoppages, regardless of whether those actions caused damage.

Claimants must additionally be legally present in the UAE and comply with the applicable residency and insurance conditions at the time of claiming compensation.

The insurance scheme covers eligible citizens and expatriate residents working in the private sector and the federal government sector, subject to specified exclusions.

Excluded categories include establishment owners working in their own businesses, domestic workers, temporary-contract workers, individuals under eighteen, and certain pensioners who have taken new employment.

For eligible employees, monthly compensation is generally calculated as sixty percent of the average basic salary received during the six months preceding the loss of employment.

Employees earning a basic salary of AED 16,000 or less fall within the first insurance category, which provides a maximum monthly compensation of AED 10,000.

Those whose basic salary exceeds AED 16,000 fall within the second category, where the maximum monthly compensation is AED 20,000.

Both categories provide compensation for no more than three months per eligible claim, subject to the employee’s actual calculated entitlement and the applicable policy limits.

The overall period of compensation cannot exceed twelve months throughout the insured person’s employment history in the UAE labor market, even when multiple eligible claims are submitted.

Under the governing regulations, the insurance provider is required to pay an approved compensation claim within two weeks after receiving a complete claim that satisfies the eligibility conditions.

Applications may be submitted through the official ILOE website, its mobile application, or the designated call center at 600599555.

Employees are advised to retain documents confirming termination of employment, review their insured basic salary, verify subscription continuity, and ensure all required premiums have been paid.

Importantly, the November clarification explains existing insurance entitlements and conditions rather than announcing a new unconditional cash payment for all citizens and residents.

Source: UAE Ministry of Human Resources and Emiratisation – Involuntary Loss of Employment Insurance Scheme (ILOE) – Emarat Al Youm.