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

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

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

Sarajevo 2010 Co-ordination of unemployment benefits by B. De Pauw 5 A migrant worker becomes unemployed after his move

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

Sarajevo 2010 Co-ordination of unemployment benefits by B. De Pauw 7 Looking for a job abroad

Sarajevo 2010 Co-ordination of unemployment benefits by B. De Pauw 8 Looking for a job abroad ↔ 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

Sarajevo 2010 Co-ordination of unemployment benefits by B. De Pauw 9 Looking for a job abroad 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

Sarajevo 2010 Co-ordination of unemployment benefits by B. De Pauw 10 Looking for a job abroad 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)

Sarajevo 2010 Co-ordination of unemployment benefits by B. De Pauw 11 Looking for a job abroad 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

Sarajevo 2010 Co-ordination of unemployment benefits by B. De Pauw 12 Residing abroad

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

Sarajevo 2010 Co-ordination of unemployment benefits by B. De Pauw 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)  Partial or intermittent unemployment  Full unemployment legislation of the State of employment legislation of the former State of employment

Sarajevo 2010 Co-ordination of unemployment benefits by B. De Pauw 15 Workers other than frontier workers Persons residing outside of the competent State, who are not frontier workers (e.g. seasonal workers)  Partial or intermittent unemployment  Full unemployment legislation of the State of employment legislation of the former State of work / Home State (return or not)

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

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