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

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

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

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

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 http://www.social-protection.org/gimi/gess/ShowTheme.do?tid=11&ctx=0

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

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

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

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

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

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

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

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 http://www.ilo.org/wcmsp5/groups/public/---ed_norm/---relconf/documents/meetingdocument/wcms_183326.pdf

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)

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

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 

The SPF: an amazing opportunity A fast track strategy Thailand

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

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

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

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.

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

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

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)

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)

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)

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)

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?

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

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 …