Who Can Receive Partial Unemployment Benefits? 

August, 2022 - Iryna Shaposhnikova

On June 21, 2022, the government adopted Resolution No. 702 , which regulates the procedure for receiving partial unemployment benefits. From now on , self-employed persons and employees who have lost part of their income can count on assistance from the state. However, it should be noted that it is not the employee, but the employer who should seek help.

Who can count on help?

Employees for whom the employer has paid social security for the past 6 months will receive partial unemployment benefits.

Employees working in:

  • state authorities;
  • local self-government bodies;
  • other organizations supported by the state budget.

That is, the state can help only private sector workers.

Only those who have lost part of their salary/income due to the fact that it has stopped or decreased will be able to apply for assistance:

  • production of products;
  • performance of works;
  • provision of services.

And the following reasons led to this: economic, technological, emergency situation, state of emergency/martial law, quarantine (hereinafter referred to as "Suspension of production").

It is obvious that the reason for the "Production Halt" at the moment is, most likely, martial law.

What are the conditions for payment of assistance?

The resolution defines an exhaustive list of criteria for providing assistance:

  • "Stoppage of production" affects more than 20% of the company's employees.
  • If the working hours and salary of such employees are reduced by more than 30% per month.
  • The employer has been paying ESS and has no total arrears for salary and ESS during the 6 months preceding the month of "Stoppage of production".
  • The employer is not a social insurance fund.

If the employer does not meet these criteria, the state does not pay benefits to its employees.

Assistance is not provided if:

  • This is a seasonal "Stoppage of production" or it occurs exclusively due to organizational and production reasons (the company is being repurposed, technical re-equipment is taking place, production technology is changing, switching to other raw materials, etc.).
  • The employee refused to be employed or temporarily transferred to another job with the employer for a full-time or weekly basis/works for him part-time/undertakes alternative service.
  • The employer ceases to operate as a legal entity; he has been declared bankrupt/bankruptcy proceedings have been initiated against him; it is in the process of rehabilitation.

What are the deadlines for applying for assistance?

You can apply for help within 90 days from the day when "Production is stopped". However, if this happened after martial law was introduced and before 05/07/2022 (the date the Law entered into force ), then you can apply for help until 08/05/2022.

Who pays the aid?

The employer can apply for assistance from the Center, but it is paid by the employer. Payments are received by insured employees with whom the employer has formalized labor relations (except for part-time employees).

Duration of benefit payment

The benefit is paid until "Production is stopped", but not more than 180 kd in the amount during 36 months. from the day when "Production ceased".

The benefit is not paid for the period when the employee is paid overtime, he went on vacation without saving his salary, and the employment relationship is suspended.

Amount of aid

The allowance is paid monthly in proportion to the employee's working time, which was reduced. The specially defined form also takes into account the employee's salary or average earnings and the normal number of hours he could work. One way or another, the maximum amount of assistance that can be received by one employee should not be more than 50% of the minimum salary, that is, it should not exceed UAH 3,250.

What is the procedure for assigning assistance?

The first stage . In order to receive assistance, the employer should submit an appropriate electronic or paper application to the Central Office at the location. It is also necessary to add information about employees who are entitled to assistance, according to the established form.

If he submits the documents in electronic form, he signs the application and the documents attached to it with an electronic signature.

The second stage. Within 5 working days from the date of submission of the documents, the Regional Central Committee must review the documents and make a decision on granting/refusal to grant aid.

If the package of documents is incomplete or contains errors, the Central Office must inform the employer about this within the same period. During the next 5 working days, the employer can finalize the documents and apply to the Center again.

If the regional center refused to provide assistance, its decision can be appealed to the center or the court.

The third stage. If the decision on the assignment of assistance is made, the Center transfers the funds to the employer's account every month. In turn, the employer pays the employee benefits 3 working days after the funds are received (not later). Uses a separate payment statement for this and sends confirmation of this to the central office.

Is the employer liable for inaccurate information?

If the employer submitted inaccurate information or in case of inappropriate spending of funds, he is obliged to voluntarily or on the basis of a court decision return the funds for assistance to the Fund .

Central Committees have the right to check (remotely or at the location of the employer) documents and information that are the basis for making a decision on the provision of assistance, as well as the targeted spending of funds. During such checks, the Central Committee has the right to receive oral or written explanations from the employer.



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