1. Unemployment protection, as part of a comprehensive social security system
Valerie Schmitt, Celine Peyron Bista
Hands-on Training, Oct 2013
Designing and implementing unemployment benefits

2. Key questions What is social security?
Towards the right to social security
The SPF endorsement
The SPF an amazing opportunity
How can social security standards help in implementing the right to social security

3. What is social security?
People face contingencies during their life cycle, which have financial consequences
Social security is provided to members of a society against the economic and social distress caused by such contingencies
Maternity
Sickness / ill health
Unemployment
Work injury
Medical care
Families with children
Invalidity
Death of the breadwinner
Old age
Life cycle

4. What is social security?
THE PROTECTION PROVIDED BY SOCIETY
To compensate for the loss of income & covers health care expenditures
To facilitate access to social services and fulfill basic needs
FINANCIAL SUPPORT
ACCESS TO SERVICES
SOCIAL TRANSFERS

5. What is social security? Typology of social transfers
Contributory
Non contributory
Compulsory
Voluntary
Targeted
Non-Targeted
 Social Insurance
 Targeted social assistance
 Universal schemes
Extension of social insurance to informal sector
 Micro-Insurance

6. What is social security? Social security as a human right
Social security is a human right (Article 22 Universal declaration of human rights)
Article 25 recognizes the right to a standard of living adequate for health and well being of the individual and his/her family … including medical care
Flagship Convention 102, 1952
Recommendation 202, 2012 reaffirms the universal right to social security

7. Towards the right to social security
Access to social security in many countries
Need to expand horizontally and vertically
Level of protection
Poor
Rest of informal sector
Formal sector
Population

8. Towards the right to social security
Social insurance mainly looks at covering formal sector workers, with in some cases extension of voluntary schemes to the informal sector
Level of protection
Social insurance
Poor
Rest of informal sector
Formal sector
Population

9. Towards the right to social security
The major part of the population is however be left without adequate protection
Level of protection
Nothing for the great majority
Poor
Rest of informal sector
Formal sector
Population

10. Towards the right to social security
All residents should enjoy at least a minimum level of social security
Countries should establish SPFs as a fundamental element of their social security systems
Level of protection
Social Protection Floor
Poor
Rest of informal sector
Formal sector
Population

11. Towards the right to social security
Based on this floor, extend social security to provide progressively higher levels of SP benefits to more people
Ex SSO article 40 complements basic pensions and UCS in Thailand
Level of protection
Social insurance
Social Protection Floor
Poor
Rest of informal sector
Formal sector
Population

12. The SPF adopted nationally
It was adopted in national social protection strategies, e.g. Cambodia
Source: NSPS-PV of Cambodia, 2011

13. The SPF endorsed globally
R202 was endorsed by the 185 member states of ILO in June 2012 with 456 ‘yes’ votes and 1 ‘not present’
R202 serves as a guidance to member states to establish or maintain nationally defined SPFs

14. The SPF adopted in Asia ILO Asia Pacific Regional Meeting (Dec 2011):
Priority to “Reducing poverty and wide inequalities in income and wealth” and “Building effective social protection floors in line with national circumstances
Adoption by ASEAN member states of the Declaration for strengthening social protection (6 Sept 2013)

15. The SPF: an amazing opportunity A set of guarantees
All residents have access to essential health care 
All children enjoy income security through transfers in cash or kind  access to nutrition, education and care 
All those in active age groups who cannot earn sufficient income enjoy a basic income security (particularly in case of sickness, unemployment, maternity, disability) 
All residents in old age have income security through pensions or transfers in kind

16. The SPF: an amazing opportunity 3rd guarantee of the SPF
2 functions of unemployment protection
Income support (immediate response against poverty)
Increase employability (long-term response to poverty)
3-dimensional approach:
Income security
Return to employment
Employability & adaptability 

17. The SPF: an amazing opportunity A fast track strategy
Thailand

18. The SPF: an amazing opportunity Poverty reduction and development
Social protection
Household consumption
Poverty and inequality
Education & training
Health
Child well being
Livelihoods and productive investments
Labour
Human capital
Physical capital
Labour productivity
Economic performance
Demand for goods and services
Increased Wages, income
Increased financing 1. 2. 3. 4.
Direct effects
Behavioral effects 5.
Source: Maastricht School of Governance

19. How to implement the right to social security
How to implement the right to social security? How can social security standards help?
Governments have to organize access and levels of services through legislative and regulatory means
It is the responsibility of the Government to design an adapted legal framework

20. How can social security standards help?
ILO has adopted Social Security Standards
Two types: Conventions and Recommendations
These standards lay down obligations and guidelines for ILO Member States
They help answer all the design questions

21. How can social security standards help?
Conventions are designed with a view to being ratified. Hence, when an ILO Member state ratifies a Convention, it becomes subject to legally binding international obligations.
Recommendations are not open for ratification, they specify general or technical guidelines and often supplement corresponding Conventions.

22. How can social security standards help?
Since 1919, the ILO has adopted 31 Conventions and 23 Recommendations in the area of social security, which have greatly contributed to the development of social security as a universal human right
In 2002, the ILO Governing Body confirmed eight out of these 31 Conventions as up-to-date social security Conventions

23. How can social security standards help?
Maternity
Sickness / ill health
Unemployment
Work injury
Convention No102, covers the nine contingencies
Life cycle
Families with children
Invalidity
Death of the breadwinner
Old age
C 183
C 128
C 128
C 128

24. How can social security standards help?
C.102 Social Security (Minimum Standards) Convention, 1952
C 168 Employment Promotion and Protection against Unemployment Convention, 1988
C 128 Invalidity, Old-Age and Survivors' Benefits Convention, 1967
C 121 Employment Injury Benefits Convention, 1964
C 130 Medical Care and Sickness Benefits Convention, 1969
C 183 Maternity Protection Convention, 2000
Supplement
R 121
Employment Injury Benefits Recommen-dation, 1964
R 131 Invalidity, Old-age and Survivors' Benefits Recom-mendation, 1967
R 134
Medical Care and Sickness Benefits Recommen-dation, 1969
R 176
Employment Promotion and Protection against Unem-ployment Recom., 1988
R 191
Maternity Protection Recommen-dation, 2000
R. 202 Social Protection Floors Recommendation, 2012 (No. 202)

25. How can social security standards help?
Flagship
C.102 Social Security (Minimum Standards) Convention, 1952
9 branches of social security
Minimum percentage of people covered (e.g. 50% of all employees or 20% of all residents)
Minimum levels of benefits guaranteed
Maximum qualifying period for entitlement to benefits
Minimum duration of benefits
Common agreed principles
C 168 Employment Promotion and Protection against Unemployment Convention, 1988
C 128 Invalidity, Old-Age and Survivors' Benefits Convention, 1967
C 121 Employment Injury Benefits Convention, 1964
C 130 Medical Care and Sickness Benefits Convention, 1969
C 183 Maternity Protection Convention, 2000
Supplement
R 121
Employment Injury Benefits Recommen-dation, 1964
R 131 Invalidity, Old-age and Survivors' Benefits Recom-mendation, 1967
R 134
Medical Care and Sickness Benefits Recommen-dation, 1969
R 176
Employment Promotion and Protection against Unem-ployment Recom., 1988
R 191
Maternity Protection Recommen-dation, 2000
R. 202 Social Protection Floors Recommendation, 2012 (No. 202)

26. How can social security standards help?
C.102 Social Security (Minimum Standards) Convention, 1952
C 168 Employment Promotion and Protection against Unemployment Convention, 1988
C 128 Invalidity, Old-Age and Survivors' Benefits Convention, 1967
C 121 Employment Injury Benefits Convention, 1964
C 130 Medical Care and Sickness Benefits Convention, 1969
C 183 Maternity Protection Convention, 2000
All residents should enjoy at least a minimum level of social security
Member states of the ILO should establish social protection floors as a fundamental element of their social security systems
Supplement
R 121
Employment Injury Benefits Recommen-dation, 1964
R 131 Invalidity, Old-age and Survivors' Benefits Recom-mendation, 1967
R 134
Medical Care and Sickness Benefits Recommen-dation, 1969
R 176
Employment Promotion and Protection against Unem-ployment Recom., 1988
R 191
Maternity Protection Recommen-dation, 2000
R. 202 Social Protection Floors Recommendation, 2012 (No. 202)

27. How can social security standards help?
C.102 Social Security (Minimum Standards) Convention, 1952
C 168 Employment Promotion and Protection against Unemployment Convention, 1988
C 128 Invalidity, Old-Age and Survivors' Benefits Convention, 1967
C 121 Employment Injury Benefits Convention, 1964
C 130 Medical Care and Sickness Benefits Convention, 1969
C 183 Maternity Protection Convention, 2000
Supplement
Convention 168 concerning Employment Promotion and Protection against Unemployment (adopted by ILC in 1988)
R 121
Employment Injury Benefits Recommen-dation, 1964
R 131 Invalidity, Old-age and Survivors' Benefits Recom-mendation, 1967
R 134
Medical Care and Sickness Benefits Recommen-dation, 1969
R 176
Employment Promotion and Protection against Unem-ployment Recom., 1988
R 191
Maternity Protection Recommen-dation, 2000
R. 202 Social Protection Floors Recommendation, 2012 (No. 202)

28. Social security standards provide guidelines for the design of SS Laws
What are the risks covered?
What are the benefits in case the risk occur?
Levels of benefits
Duration of benefits
Revision of benefits
Who is covered?
Residents, citizens, definition of the labour law…
What are the qualifying conditions? (how many years/months of contribution…)
How will the protection be financed?
How will the protection be organized?

29. Social security standards provide principles for the design of SS Laws
The State is responsible for the provision of benefits & proper functioning of the scheme 
Solidarity & pooling of risks
between men & women, rich & poor, generations 
Tripartite administration
Representatives of covered persons must participate in the management or associated to the key decisions 
Collective financing of benefits
Through contributions, taxation or both
Employees’ contributions should not exceed 50% of the financial resources allocated

30. Social security standards provide principles for the design of SS Laws
Adjustment of pensions (to keep the purchasing power)
Following changes in the cost of living or general level of earnings 
Right to appeal
In case of the refusal of the benefit
Regarding the quality & quantity of benefits 
Suspension of benefits
If beneficiary absent from territory, receives other benefits, made a fraudulent claim …