UNEMPLOYMENT INSURANCE

UNEMPLOYMENT INSURANCE

 Definition  of Unemployment Insurance:

Workers who are self-employed are also not eligible to receive unemployment insurance and must provide their own rainy-day funds to cover times when no work is available.A  source of income for workers who have lost their jobs through no fault of their own. Workers who quit or are fired are generally not eligible for  unemployment insurance.

Unemployment insurance often only pays workers about half of what they were earning at their previous job to help encourage them to seek re-employment. Unemployment is paid to workers by state governments from a fund of unemployment taxes collected from employers. The former employee often must continually prove that he or she has been actively searching for a job as a condition of continuing to receive unemployment insurance.

Benefits may be based on a compulsory para-governmental insurance system. Unemployment benefits (depending on the jurisdiction also called unemployment insurance or unemployment compensation) are  social welfare payments made by the state or other authorized bodies to unemployed people depending on the jurisdiction and the status of the person, those sums may be small, covering only basic needs, or may compensate the lost time proportionally to the previous earned salary.

In some countries, a significant proportion of unemployment benefits are distributed by ,trade unions, an arrangement known as the ghent system.Unemployment benefits are generally given only to those registering as unemployed, and often on conditions ensuring that they seek work and do not currently have a job.

The first unemployment benefit scheme was introduced in the  united kingdom with the  National insurance act 1911 under the liberal party government of H.H.Asquith.The popular measures were to combat the increasing influence of the party among labour the country's working-class population. It only applied to wage earners, however, and their families and the unwaged had to rely on other sources of support, if any Key figures in the implementation of the Act included Robert Laurie Morant and William Braithwaite. The Act gave the British working classes a contributory system of insurance against illness and unemployment.

The scheme was based on  actuarial principles and it was funded by a fixed amount each from workers, employers, and taxpayers. After one week of unemployment, the worker was eligible for receiving 7 shillings/week for up to 15 weeks in a year. By 1913, 2.3 million were insured under the scheme for unemployment benefit.It was restricted to particular industries, particularly more volatile ones like shipbuilding, and did not make provision for any dependents.

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