The Cabinet of Ministers has set out in a new version the Procedure for providing and returning funds aimed at financing partial unemployment benefits for the quarantine period established by the Cabinet of Ministers to prevent the spread of acute respiratory disease COVID-19 caused by the SARS-CoV-2 coronavirus on the territory of Ukraine (the Procedure).
On June 23, 2021, it was officially published (Uriadovyi Courier No. 118), and Resolution of the Cabinet of Ministers of Ukraine No. 635 dated June 16, 2021 entered into force. It sets out a new version of the Procedure for the provision and refunding to finance partial unemployment benefits for the period of quarantine and/or emergency, established by the Cabinet of Ministers of Ukraine.
This Procedure defines the mechanism for providing funds aimed at financing partial unemployment benefits for the period of quarantine and/or emergency, established by the Cabinet of Ministers of Ukraine, the amount, terms of provision, as well as the mechanism for returning funds aimed at financing such benefits.
Who Gets Benefits, and Who does Not?
Benefits shall be provided by the employment centre to insured persons, in particular:
- employees with whom the employer has issued employment relations, in case of loss of part of their salary or income due to a forced reduction in the length of working hours provided for by law due to the suspension (reduction) of activities, at the request of the employer or an individual entrepreneur who is an insured person, for their payment to employees with whom the employment relations have not been terminated,
- or an individual entrepreneur who is an insured person and does not receive benefits as an employee.
Benefits shall not be provided to individual entrepreneurs who have chosen the simplified taxation system and belong to the first group of single taxpayers and who have not paid insurance premiums based on paragraphs 9-10.1, Section VIII “Final and Transitional Provisions” of the Law on USC.
Amount of Benefits
The number of benefits shall be determined and provided for each month of the specified period in proportion to the working time of the employee or individual entrepreneur who is the insured person, that is reduced.
The number of benefits shall be provided to employers, including individual entrepreneurs who are insured persons, from among small and medium-sized businesses for the period of suspension (reduction) of activities if the employer or an individual entrepreneur who is an insured person pays a single contribution to mandatory state social insurance within six months preceding the date of suspension (reduction) of activities.
Payment of Benefits
Payment of benefits to employees shall be made by the employer with whom the employment relations are registered (except for persons working part-time for the employer).
Payment of benefits to individual entrepreneurs who are insured persons shall be carried out by the employment centre.
An employer or an individual entrepreneur who is an insured person can apply for benefits within 90 calendar days from the date of suspension (reduction) of activity.
The period of payment of benefits shall not be taken into account when considering applications for subsequent receipt of partial unemployment benefits for the period of quarantine under Article 47 of the Law “On Employment of the Population”.
To receive assistance, an employer or individual entrepreneur who is an insured person must apply to the employment centre at the place of registration as a USC payer and submit (in person or through the Unified State Web Portal of Electronic Services, including through the information systems of state and local self-government bodies integrated with it (if technically possible) the documents specified in clause 9 of the Procedure.
The employer/individual entrepreneur, who is an insured person, may additionally provide other documents specified in clause 9 of this Procedure, confirming that the scope of activities was suspended (reduced) due to the implementation of measures provided for by quarantine and/or an emergency, to prevent the spread of particularly dangerous infectious diseases.
If a decision is made to refuse to provide benefits, the employment centre shall inform the employer/individual entrepreneur who is an insured person thereof in writing within three business days from the date of making such a decision, with justification for the reasons for refusal.
If an employer/individual entrepreneur who is an insured person is denied benefits for reasons beyond their control, one shall have the right to re-apply for funds to pay benefits to employees within the period of quarantine and/or emergency.