Immigration
UAE | ILOE registration requirement for new and renewal of Employment Residence Permits in Mainland
Summary
Earlier last year, the UAE Government announced a new requirement for employees in the private and government sectors to register with an unemployment insurance scheme, called the Involuntary Loss of Employment (ILOE). The initial deadline for this registration was 30 June 2023, which was later on extended until 1 October 2023 as per Ministerial Resolution No. 340 of 2023 Amending the Deadline for Imposing Fines Related to the Unemployment Insurance System Contained in Ministerial Resolution No. 604 of 2022 on Unemployment Insurance System. Confirmation of ILOE subscription is now required in order to support the issuance of a Labour card for a new Employment Residence Permit (ERP).
The Detail
ILOE insurance subscription is mandatory for all private and public sector employees and the deadline to register was extended to 1 October 2023. Failure to register for ILOE within the deadline incurred a fine of AED 400.
The ILOE scheme introduces flexible duration options for individuals, allowing them to choose between one or two years. Payment will vary depending on the chosen duration.
From January 2024, as part of an effort to streamline the implementation of the ILOE insurance scheme, confirmation of ILOE subscription is required prior to the issuance of the Labour Card in a new Employment Residence Permit application for Mainland employees. Furthermore, individuals who have previously held a UAE residence permit must provide a copy of their ILOE insurance certificate in support of their new Labour Card. The fines imposed for late registration are as follows:
To complete the ILOE registration for applicants who have never held a UAE Residence permit, a new ERP application must be submitted. Upon ERP approval, the applicant’s profile will be generated, and ILOE registration can be completed online after making the relevant payment. Subsequently, the Labour Card will be issued within 24 hours of ILOE registration. Alternatively, an individual can also visit Al Ansari exchange to complete their ILOE registration.
What this means
The authorities have linked the registration of the ILOE Scheme to the MOHRE systems in order to facilitate the issuance of a Labour Card for work authorisation purposes, and therefore making it mandatory for employees to have an active ILOE policy for processing of Labour Card applications (new and renewal). Failure to evidence an active ILOE policy will delay the processing of Labour Card applications.
How we can help
We understand that for many private sector companies this will require careful workforce planning. We can help to:
Contact us
For a deeper discussion on the above, please reach out to your Vialto Partners point of contact, or alternatively:
Anir Chatterji
EMEA Immigration Partner
Rekha Simpson
Director, Middle East Immigration
Ananth Prasad
Manager, Middle East Immigration
Smit Kumar
Senior Associate
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Contact us on the following address: me-immigration@vialto.com
Vialto Partners (“Vialto”) refers to wholly owned subsidiaries of CD&R Galaxy UK OpCo Limited as well as the other members of the Vialto Partners global network. The information contained in this document is for general guidance on matters of interest only. Vialto is not responsible for any errors or omissions, or for the results obtained from the use of this information. All information is provided “as is”, with no guarantee of completeness, accuracy, timeliness or of the results obtained from the use of this information, and without warranty of any kind, express or implied, including, but not limited to warranties of performance, merchantability and fitness for a particular purpose. In no event will Vialto, its related entities, or the agents or employees thereof be liable to you or anyone else for any decision made or action taken in reliance on the information in this document or for any consequential, special or similar damages, even if advised of the possibility of such damages.
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Further information on Vialto Partners can be found here: www.vialtopartners.com
Vialto Partners (“Vialto”) refers to wholly owned subsidiaries of CD&R Galaxy UK OpCo Limited as well as the other members of the Vialto Partners global network. The information contained in this document is for general guidance on matters of interest only. Vialto is not responsible for any errors or omissions, or for the results obtained from the use of this information. All information is provided “as is”, with no guarantee of completeness, accuracy, timeliness or of the results obtained from the use of this information, and without warranty of any kind, express or implied, including, but not limited to warranties of performance, merchantability and fitness for a particular purpose. In no event will Vialto, its related entities, or the agents or employees thereof be liable to you or anyone else for any decision made or action taken in reliance on the information in this document or for any consequential, special or similar damages, even if advised of the possibility of such damages.
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