Module 5 Legal design of the unemployment protection programme October 10, 2013

Agenda Draft of an unemployment protection law Presentation on compliance mechanisms: sanctions, incentives; Appeal system Options for the legal structure of unemployment protection programmes

Outline of the UB law, in line with ILO Conventions No.102 and 168 Contingency covered/objectives Population covered Benefits Qualifying conditions Financing arrangements and level of contribution (if UI/EI) Administrative arrangement: tripartite board Enforcement mechanisms Appealing system Periodical valuation

Outline of the UB law, in line with ILO Conventions No.102 and 168 Contingency covered/objectives Population covered Benefits Qualifying conditions Financing arrangements and level of contribution (if UI/EI) Administrative arrangement: tripartite board Enforcement mechanisms Appealing system Periodical valuation

Key Notions for UB programme Qualifying Conditions: Need to register for employment; Need to apply for benefit; Rights and Obligations Voluntary Quitters v.s. Involuntary Job Loss: Definition of Just Cause; Handout 5-2 on listing of situations with “just cause” demonstrated after extensive factfinding;

Conditions for UB suspension: refusal of suitable employment “Suitable employment” not defined; Convention 168: assessing the suitability of employment, take into consideration, to an appropriate extent, of the age of the unemployed persons, their length of service in their former occupation, their acquired experience, the length of their period of unemployment, the labour market situation, the impact of the employment in question on their personal and family situation and whether the employment is vacant as a direct result of a stoppage of work due to an on-going labour dispute.

Suitable employment (cont.) Refusal of Suitable Employment (continued): once it has been determined that the employment is suitable, the unemployed worker must demonstrate he/she had “good cause” to refuse the job. Incentives: Can work part-time work while collecting UI benefits; Work Sharing Program.

Enforcement Compliance mechanisms are different throughout the world (sanctions and incentives); Handout 5-1 highlights the issue of the severity of requirements to receive UI/EI in a number of countries studied in the comparison report.

Enforcement and prevention of abuse: Sanctions and penalties False Statements/Fraudulent Means: Appropriate administrative penalties or jail; Must knowingly made a false statement to impose penalty (if it’s determined the unemployed person had no intention to make false statement (honest mistake), could send a warning.

Appealing syustem Convention 102 and 168 both provide that every unemployed worker has a right of appeal in decisions made by the UI authority; The appeal system should be effective and easy to use by unemployed workers and employers; Usually allowed 30 days from the date of decision to formally submit an appeal.

Options for legal architecture Option 1: New stand-along law/act Option 2: Incorporation to existing Social Security or Employment Act/Law Review of countries’ experiences (14 UI/EI schemes) Option Nb of countries Social security Law 5 Employment Law 1 Separate Law 8 (most countries started first under SS Law)