Can an intimation memo claim ILOE benefits if a company terminates contracts due to financial issues?

Hello,

An intimation or notification from the employer about possible job termination is generally a heads-up without finalizing the contract's end.

It's often issued to inform employees of potential changes due to economic challenges but does not officially end employment.

When an employer formally terminates a contract, it legally ends the employment relationship. Under UAE labor law, termination must include appropriate notice (usually 30 days unless otherwise specified) and the employer must pay end-of-service benefits and any outstanding dues.

UAE's ILOE policy generally requires that the job loss be confirmed as involuntary. A mere intimation memo likely wouldn’t be sufficient; a formal termination letter is typically needed as proof of job loss for ILOE claims.

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Greetings,

The notice to the worker to terminate the contract shall be according to the period stipulated in the contract before the termination of the worker's service, and the minimum period must be one month before the worker is suspended from service to adjust his situation and find another alternative job.

As for unemployment insurance, the worker must have had his services terminated by the employer.

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Dear questioner,

It is still the company's inability to maintain the business, and it is a form of redundancy, so you can apply for the ILOE insurance.

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Dear Questioner,

While an intimation memo serves as a notification regarding potential job loss due to financial issues within the company, it does not constitute formal termination and thus may not suffice for claiming unemployment benefits under ILOE.