1. Protection against Unemployment and Promotion of Employment
Celine Peyron Bista, Chief Technical Advisior
ILO Regional Office for Asia and the Pacific
Consultation workshop on findings of the 18 months review
Hao Binh City, 18 August 2011

2. Why? Protecting workers and their family against loss of employment and income ILO C.102 (1952) and C.168 (1988)
Maintaining the unemployed and their family in health and decency
Protection against the poverty spiral
Active labour market policies for full, productive and fully chosen employment
Upgrading skills and matching labour supply/demand
Shifting national production to higher levels of technology

3. What? Unemployment or Employment Insurance
Social insurance principle (pooling risks, redistributive functions)
Periodical payment, not a lump sum (limitations of the on-time severance payment)
provide at least partial income replacement, usually over a limited period
Employment promotion
Skills development and employability

4. How? Different types of schemes = no universal formula
contributory UI schemes (bipartite, tripartite contributions)
employment-related social assistance that steps in when the unemployed are no longer eligible for UI, or for young new entrant
non-contributory, tax financed social assistance, instead of insurance for universal minimum living guarantee.
Key stone: tripartite dialogue!

5. How? UI/EI Benefits recommended by C.168
Temporary and digressive benefits
Level?
Not less than 50% of previous earnings
Or minimum wage
Or minimum guarantee for basic living expenses.
Allowance for vocational training and retraining
Allowance for travel costs to claim benefits
Access to job placement and counseling

6. How? Eligibility criteria under C.168
Adequate length of qualifying period (to be defined by the national law)
Suspension or reduction when the person has :
been fired for miss-conduct,
left employment voluntarily without good reason.
failed to use the employment services
Refused suitable employment.
Inclusion of part-time and seasonal workers.

7. How? Maintenance of SS entitlements under C.168
Extension of medical coverage for beneficiaries and their families under UI
Acquisition of rights for old-age, disability, survivors pensions
Acquisition of rights for maternity and family benefits.

8. A typology: Passive and Active Labour Market Policies
Passive LMP
Active LMP
Provides temporary ‘income security’ for the unemployed:
Unemployment insurance (under Social Insurance Law)
Severance pay (under Employment Law)
Severance pay is not UI !
ALMP provides active support to unemployed workers in making ‘transitions’ to new employment:
Job search assistance
Training or re-training to increase employability.
Promotion of self-employment through business management training, mentoring, credit access, tax breaks, etc.
Wage subsidies to encourage hiring of unemployed or maintaining in employment.

9. UI = what does work
Unemployment insurance
Employment services (vacancy information, job matching, vocational training, and other ALMP
is one of the most effective and efficient mechanism to:
&
1- to protect the unemployed and their families against poverty and deal with the economically-adverse effect of the crisis
2- to assist them to return to employment as soon as possible on the other hand (stabilizing the employment)

10. Let’s now look at country examples, and discuss the implications for Viet Nam UI scheme. Thank you!