Stock-Jobloss
The Involuntary Loss of Employment (ILOE) scheme provides security for employees who lost their jobs due to reasons other than disciplinary action or resignation until they find a new job. Picture used for illustrative purposes. Image Credit: Shutterstock

Dubai: If you did not enrol in the Involuntary Loss of Employment (ILOE), also known as Unemployment Insurance Scheme, in time or have skipped the scheduled instalment payment, you will face fines between Dh200 to Dh400, and these need to be paid quickly, or you may face stricter repercussions.

In November last year, the Ministry of Human Resources and Emiratisation (MoHRE) reminded workers to settle the fines, or face administrative measures "including not granting them new work permits until fines are paid, as well as deducting the fine amount from their salaries or end-of-service gratuities.”

If you joined your job recently, you must subscribe to the job loss insurance scheme within four months. If you fail to enrol within the specified period you will incur a Dh400 fine, as per MOHRE’s announcement.

To find out if you have incurred any fines, you can check and pay them through the ‘ILOE Quick Pay’ service, available on the MOHRE app, and also have the option to pay the amount in instalments.

Here are all the details.

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What is the mandatory Unemployment Insurance Scheme?
The ILOE scheme came into effect on January 1, 2023, as a social safety measure for workers in the UAE. Employees are required to pay for the mandatory insurance scheme, which provides them with a payout in case they lose their job for reasons beyond their control. After a year of subscribing to the scheme, which has instalments of Dh5 or Dh10 per month depending on your basic salary, you will be eligible for a three-month compensation of 60 per cent of your basic salary.

According to MOHRE’s latest figures, over 6.6 million workers have now subscribed to the job loss insurance scheme.

If you have still not subscribed to the scheme, you can find out more about the process you need to follow through this detailed guide here. 

6.6 million

Number of UAE workers who have subscribed to the Unemployment Insurance Scheme.

How to check and pay fines through ‘ILOE Quick Pay’

You can find the service on the MOHRE app or website - www.mohre.gov.ae. Here are the steps to follow if you are using the app:

Step 1: Download the app and sign-in with your UAE Pass

Download the MOHRE app, which is available for Apple and Android devices.
Next, log-in with your UAE Pass, which is the national digital identity for citizens, visitors and residents in the UAE. Once you have signed-in, select the ‘employee’ category and enter your labour card number. If you do not know your labour card number, you can find it through the app itself. 

Step 2: Access the ‘ILOE Quick Pay’ service

On the app's homepage, you will see the ‘ILOE Quick Pay’ service. Tap on it and then select one of the options:
· Emirates ID number
· Unified Number (UID No.)
· Labour card number
· Personal code number – this is a 14-digit number which can be found on your labour card.

Enter the details depending on the option you chose and then tap ‘Search’.

Step 3: Check and pay your ILOE fines

If you are subscribed to the ILOE scheme and have paid your instalments on time, you will receive a pop-up notification which states – ‘there is no fine against this person’.

If you do have fines registered on your file, you will be able to view them. Next, you will have the option to pay the fines online with your credit or debit card or pay the amount in instalments.

Once you have made the payment, it will take one working day for it to be processed, according to MOHRE.

ILOE Quick Pay
'ILOE Quick Pay' service on the MOHRE app. Image Credit: Ministry of Human Resources and Emiratisation (MOHRE) mobile app.

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Can I pay the fines in-person?

According to MOHRE, you can visit one of the authorised business service centres as well to enquire about your fines and settle them. You can find the list of approved MOHRE business service centres in each emirate here: www.mohre.gov.ae/en/services/approved-services-centers.aspx

Can I apply for an exemption from fines?

Through the ‘ILOE Quick Pay’, you will also have the option to apply for a fine waiver. According to MOHRE, you must provide documents to support your appeal. Once you have submitted the application, you will be informed within 15 working days of MOHRE’s decision through the app or website, or you can also contact the MOHRE call centre on 600 590000.

Fines and penalties

The fines and penalties for not subscribing or complying with the ILOE policy are stipulated in Articles 9 and 10 of the Ministerial Resolution No. 604 of 2022 Concerning Unemployment Insurance Scheme:

1. Failure to subscribe to the scheme

If you do not subscribe to the Unemployment Insurance Scheme after the deadline, you will face a Dh400 fine.

2. Failure to pay insurance instalments on time

If you have subscribed to the scheme but have not paid the premium according to the selected payment frequency (monthly, quarterly, semi-annual or annual) for a period exceeding three months from the due date, the insurance certificate will be cancelled and a penalty of Dh200 will be imposed.

Unpaid fines may get deducted from your salary

The ministerial resolution also highlights the penalties for ignoring the fines that have been levied on you. According to Clause 4 of Article 9 of the resolution, an employee who fails to pay their fines for three months from the due date will have the fine amount deducted from their wages through the Wage Protection System (WPS), or their end-of-service gratuity.

No new work permit

If you do not pay all your fines, you may also be prevented from getting a new work permit, in case you wish to join a new job.

As per Article 10 of the resolution, if there are fines resulting from non-subscription or non-compliance with the ILOE scheme, the employee will not be eligible for a new work permit.

The article was first published on November 16, 2023, and has been updated since.