The Law of Ukraine
On Mandatory State Social Unemployment Insurance
Date of Entry into Force:
January 1, 2001
The present Law determines legal, financial and organizational grounds of mandatory state social unemployment insurance.
Subjects to unemployment insurance are: the individuals working under the terms of labor agreement (contract), including those doing alternative (non-military) service, as well as those who work part-time or part-week, or on other grounds envisaged by labor legislation. The person shall acquire status of the insurant from the day of concluding labor agreement. Payment of insurance fees shall also start from this day. Payment of insurance fees shall stop from the day of breaking labor agreement. Subjects to unemployment insurance shall not be: working pensioners and the persons who according to the legislation have the right to pension, as well as foreigners and stateless persons who temporarily work in Ukraine, unless otherwise is stipulated by the international agreements of Ukraine, the binding nature of which is approved by the Verkhovna Rada of Ukraine.
The right to material provision in case of unemployment and social services shall have:
- the insurants;
- the non-insurants:
1. Military men of the Armed Forces of Ukraine, the State Frontier Service of Ukraine, internal troops, civil troops, other military units created according to the laws of Ukraine, the Security Service of Ukraine, bodies of internal affairs of Ukraine, the persons discharged from military service due to reduction of quantity of staff without the right to pension;
2. The persons who look for a job for the first time;
3. The non-insurants in case they are registered as unemployed according to set procedure.
There are the following types of material provision:
- unemployment aid, including its one-time payment for the unemployed to start business activity;
- partial unemployment aid;
- material aid in the period of professional training, retraining or advanced training of the unemployed;
- unemployment material aid, one-time material aid to an unemployed individual and disabled individuals, supported by him;
- aid for funeral in case of death of an unemployed individual or individuals that were supported by him.
There are the following types of social services:
- professional training or retraining, advanced training and career guidance;
- search for suitable job and assistance in employment, including by grants to the employer for creation of additional jobs and financing paid public works for the unemployed;
- informational and consulting employment services related to employment.
The Fund for Mandatory State Social Unemployment Insurance of Ukraine is established for management of insurance in case of unemployment, imposition of fee and accumulation of insurance fees, control over use of funds, payment of provision and rendering of social services, conducting other functions according to this Law and its statute. The Fund’s money shall not be included into the State Budget of Ukraine. All insurants are members of the Fund.
The Fund is managed by the Fund’s board of directors and the Fund’s executive directorate. The Fund’s board of directors consists of 15 state representatives, insurants and employees which perform their duties on a voluntary basis. The Fund’s board of directors shall perform its authorities for six years and resign on the day of the first meeting of a new staff of Fund’s board of directors. The Fund’s board of directors is headed by the head, which is elected from the Fund’s board of directors for two years.
The Law inscribes authorities of the Fund’s board of directors, its executive directorate and supervisory board.
The Fund’s money shall be formed from:
- insurance fees of the insured – employees, insurants, which are paid under conditions and procedure envisaged by this Law and other legislative acts. Amount of insurance fees shall be set by the Verkhovna Rada of Ukraine annually upon submission of the Cabinet of Ministers of Ukraine. Employees and insurants shall pay insurance fees once per month on the day of receipt by the employees of funds for remuneration of labor in bank establishments;
- allocations of the State Budget;
- amounts collected from financial sanctions applied to the violators of the procedure for payment of insurance fees and use of the Fund’s money, non-adherence to the legislation on employment of population;
- profit obtained from temporarily free money of the Fund, including reserve of the Fund’s money, on deposit account;
- charity contributions of enterprises, institutions, organizations and natural persons;
- other allocations according to the legislation of Ukraine.
The following persons shall be exempted from payment of insurance fees to the Fund:
- insurants for the period of holidays for childcare until s/he reaches three years old and of holidays for childcare until s/he reaches six years old by medical conclusion;
- insurants in part of obtained partial unemployment aid.
Provisions of the Law determine conditions, duration and amount of aid granted to different categories of persons from the Fund’s money in case of unemployment.
The Law inscribes rights, duties and responsibility of the Fund, the subjects of insurance and the insured for non-fulfillment of requirements of the legislation.