Is it mandatory for Emirati employees to subscribe to the ILOE insurance?

Dear Questioner,

Here are the answers to your questions regarding UAE law:

1. Is it mandatory for Emirati employees to subscribe to the ILOE insurance?

Yes, it is mandatory for Emirati employees to subscribe to the Injury and Occupational Liability Insurance (ILOE) in the UAE.

This insurance is part of the UAE's efforts to enhance worker welfare and ensure protection in the event of workplace injuries.

The insurance is compulsory for both Emirati and non-Emirati employees in the private sector under UAE Federal Law No. 8 of 1980 (Labor Law), and the law was further strengthened by Federal-Decree Law No. 33 of 2021, which mandates this coverage for all employees.

2. If an employee does not subscribe, will the resulting fine be reflected in our system?

Yes, if the employer fails to comply with the mandatory insurance requirement (either by not enrolling the employee or failing to pay the required premiums), the employer can face penalties.

These fines will typically be monitored by the UAE's Ministry of Human Resources and Emiratisation (MOHRE).

Employers who do not ensure that their employees are covered under the ILOE may face fines, and such violations will be recorded in the system, possibly leading to legal action or restrictions on business activities until compliance is met.

3. Are employers required to pay such fines on behalf of employees?

Generally, employers are responsible for paying the fines related to non-compliance with mandatory insurance requirements, as it is the employer's duty to ensure that the insurance is in place for their employees.

These fines cannot usually be passed on to the employee. If the employer fails to meet the legal requirement, they are liable for the penalty, and they must ensure they comply with all the necessary insurance regulations to avoid further fines and legal complications.

I hope this clarifies your questions. If you need further details or have more inquiries, feel free to ask!

Regards,

Mohammed Salah

Legal Consultant

1. Is it mandatory for Emirati employees to subscribe to the ILOE insurance?

Yes, subscription to the Unemployment Insurance Scheme (ILOEE) is mandatory for every employee, whether a UAE national or resident, in both the public and private sectors.

Subscription to the scheme must be made within the time period specified by the authorities to avoid fines.

2. If an employee does not subscribe, will the resulting fine be reflected in our system?

If the employee does not subscribe to ILOE insurance, a fine of AED 400 will be imposed.

The fine may not be reflected directly in the company’s payroll system, but it will be added to the employee’s record in the government system such as the Ministry of Human Resources and Emiratisation (MOHRE).

The fine remains the responsibility of the employee, and may impact other procedures such as visa or residency renewal.

3. Are employers required to pay such fines on behalf of employees?

No, employers are not obligated to pay fines on behalf of employees.

Subscription to ILOE insurance is the personal responsibility of the employee, and he must bear any fines arising from non-compliance.

According to UAE law, yes, Emirati employees are required to subscribe to the ILOE (Unemployment Insurance).

If an employee fails to subscribe, a fine may be imposed, and this fine will be reflected in the company’s system. Employers are expected to pay such fines on behalf of the employees in certain cases.

For precise legal advice on this matter, feel free to contact us via WhatsApp. Our firm specializes in labor and insurance matters and has extensive experience in handling such issues to ensure the best solutions.

Hello,

1. ILOE insurance is compulsory for all private and federal government sector employees in the UAE, including Emirati nationals.  

2. Yes, fines for non-subscription will likely be reflected in your system. The specific mechanisms for tracking and enforcing these fines may vary depending on the employer and the relevant authorities.

3. The responsibility for ensuring ILOE insurance coverage typically lies with the individual employee.

Dear Client,

Thanks for your question! I hope you are doing well. I will assist you in this matter.

1. Yes, it is mandatory for Emirati employees to subscribe to the Involuntary Loss of Employment (ILOE) insurance in the UAE.

2. If an employee does not subscribe, a fine of AED 400 will be imposed, which can be reflected in the employer's system.

3. Employers are generally not required to pay these fines on behalf of employees.

4. It is important for employers to inform their employees about the ILOE insurance requirements to avoid penalties.

5. Compliance with this insurance scheme is essential for both employees and employers in the UAE.

Thanks & Regards,

ABDUL WAHIED