Employees, who have paid fund for unemployment, during the period when they were in job, are eligible to get unemployment insurance. This is a financial benefit given by govt. to those workers who have been made redundant without their fault. This is a source of temporary income, when the state is going to compensate the worker by paying weekly payments to him/her. This was originally deducted from employee salary as pay roll tax. In America, state uses to pay 26 weeks payment to those employees, who have been made redundant without their fault. This weekly payment comprises the half of monthly income of an individual. The limit of 26 weeks, encourages the worker to seek new job and at the same time putt claim to insurance and take guidelines from local court of labor as how to proceed to get the weekly payment.
Rules for paying this claim are clear; the employee must provide the fair grounds for receiving this payment. If he/she has been terminated on the grounds of misconduct, no claim will be made. In case the worker was self employed, and making insurance claim when there is no work, he/she will be guided to go for personal finance or saving instead of demanding unemployment insurance. Any worker, who was in a job for less than or equal to three months and made redundant is not entitled to get these weekly payment.
Additionally, all documentary evidence will need to be submitted from the day when unemployment started. If case is submitted at some later date, payment will be made from that date. Employee need to show presence weekly or monthly at employment office to show the evidence of unemployment and also a proof that they are in search of new job and not staying at home to take the payments aiming to receive it for longer than required weeks. Now this appearance can be made through a phone call at employment office.
Claiming the unemployment insurance can be a daunting task, which includes provision of documentary evidences, physical appearance and showing proof of efforts for getting another job. The claimant has to face the rejection from employer in some cases. In circumstances, when employee is quitting the job for no reasons and giving resignation, he or she is not eligible to receive compensation. The only exception is tolerated if the circumstances leading to resignation were not controllable and there was some impact of employee`s security. State may allow you compensation if employment place was destroyed due to fine or any natural destruction like earthquake etc.
During the period of high unemployment, state can extend the compensation time for more than 26 weeks depending upon the severity of employment conditions. Thanks to the concern and caring policies of Govt. to provide financial support to unemployed workers in the crises period. Through web and phone, all procedures to file the claim for unemployment insurance have been easily made now contrary to past practices.
Now there is a greater trend on employee and business to go for all products of insurance policies to meet with the uncertain economic and market conditions.