20 August 2009

Unemployment Benefits under New Ministerial Regulation,
on 19 June 2009

A Ministerial Regulation covering unemployment benefits was published in volume 126 of the Government Gazette on 19 June 2009 and will take effect on a temporary basis.

Under the regulation, employees who have paid into the social security fund prior to being laid off are entitled to special unemployment benefits if they were laid off during the economic crisis, or between 1 December 2008 to 31 December 2009, at the rate of 50% of their daily wages, however the benefits will cover only 240 days.
         
Employees laid off more than once during the calendar year are entitled to unemployment benefits but not more than 240 days per year.
               
The Ministerial Regulations 2004 provides entitlement to unemployment benefits for employees’ being laid off, resigning, and ending their fixed employment contracts without extension. Employees receiving benefits under the 2004 regulations may also be entitled to benefits under the 2009 regulations provided that the combined unemployment benefits do not exceed 240 days within a one-year period.
               
In the event a calendar year ends although the employee has not received the full entitlement amount under the new regulation, the employee can continue to receive benefits under the new calendar year until the full amount is received.
               
All rules and regulations outside of the Ministerial Regulations 2009 published on 19 June 2009 will come under the Ministerial Regulations 2004.