co-ordination of unemployment benefits an overview of the main rules in regulations 883/2004 &...

Co-ordination of unemployment benefits

An overview of the main rules

in Regulations 883/2004 & 987/2009

Sarajevo 2010 Co-ordination of unemployment benefits by B. De Pauw

2

Implementation of the basic coordination principles

The coordination rules on unemployment benefits are peculiar:

Totalisation principles are not fully implemented

Only a marginal implementation of the export principles


3

Specific features

Umemployment benefits cover the risk associated with the involuntary loss of revenue whilst still being able to work

Tight link to employment policy registration with employment service; active participation in employment promotion measures …

Remain available for monitoring & control by the employment service (►residence requirement)


4

Three different situations

1. A migrant worker becomes unemployed afterwards

2. Looking for a job abroad: export of benefits

3. Workers residing outside the competent State

1. Frontier workers: typical – atypical

2. Workers other than frontier workers


5

A migrant worker becomes unemployed after his move


6

A migrant worker becomes unemployed after his move

Usually a qualifying period (1 - 2 years)

Aggregation principles: For employed and self-employed workers Last insurance/employment in the State where

the claim is lodged Taking into account the actual earnings

U1-

SED


7

Looking for a job abroad


8


↔ Requirement to be available for work in the competent State

↔ Need for control & monitoring (►residence)

In principle no export of unemployment benefits

Contrary to the freedom of movement or European citizenship?

ECJ C-406/04


9


Exception: a limited export possible when all the following conditions are met (I):

1. Registration of – at least – four weeks with the employment service of the State of last employment;

Possible reduction of this period

2. Registration with the employment service of the State of stay, at least within seven days after departure;

Possible extension of this period


10


Exception: a limited export possible when all the following conditions are met (II):

3. Comply with the control procedure of the State of stay; On request: monthly follow-up on persons’ situation

4. Return within 3 months to the competent State Possible extension of this period to 6 months Late: loss of benefits except if more favourable

national legislation

5. Usable several times per unemployment period (max. total 3-6 months)


11


Mechanism

Benefits directly paid by the competent institution

↔ Reg.1408/71: Benefits were provided by the institution of the State where the person went to look for a job. The serving institution was afterwards reimbursed by the competent institution.

U2-

SED


12

Residing abroad


13

Frontier workers

Persons employed in territory of a State other than their State of residence, who return at home at least once a week.

Partial or intermittent unemployment

Full unemployment

legislation of the State of employment

legislation of the State of residence

+ optional registration in former State of employment


14

A-typical frontier workers

Persons who maintain in the State of last employment personal and business links of such a nature as to give them a better chance of finding new employment there (Miethe-case)


Full unemployment


legislation of the former State of employment


15

Workers other than frontier workers

Persons residing outside of the competent State, who are not frontier workers (e.g. seasonal workers)


Full unemployment


legislation of the former State of work / Home State (return or not)


16

Reimbursements between institutions When the State of residence has to provide the

unemployment benefits without having collected the contributions: unfairness new system on reimbursements for the State of residence

3 or 5 months Limited by ceiling Evaluation of this mechamism after 5 years


17

co-ordination of unemployment benefits an overview of the main rules in regulations 883/2004 &...

Documents