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Unemployment Benefits

This page was last updated on: 2021-04-02

Unemployment Benefits

Unemployment Allowance is provided to workers losing their jobs under no fault of their own (on account of closure of factories, retrenchment or permanent invalidity of at least 40% arising out of non-employment injury). Unemployment allowance is the 50% of an insured worker's daily average earnings. It is paid up to one year to the workers who have paid contributions for at least 3 years. During this time, free medical care is also provided to beneficiaries and their dependents.

(http://www.esic.nic.in/benefits.php)

 

Unemplyment Benefits Under State Laws

Andhra Pradesh

Maharashtra

Karnataka

Uttar Pradesh

Rajasthan

Tamil Nadu

Gujarat

West Bengal

 

Unemployment Benefits in Andhra Pradesh

For Advocates’ Clerks:

Advocates’ Clerks, who are members of the fund are entitled to receive an amount upon the cessation of employment. The amount of the same is notified by the committee for corresponding years of service.  Provided that a member who completes 30 years of service as an Advocate’s Clerk and who is on the rolls of Advocates’ Clerks’ Welfare Fund for a period of not less than 10 years, opts for retirement, be entitled to receive half of the existing Death Benefit towards Retirement Benefit. Any member of the fund, may opt for a retirement benefit at any time after five years of admission as a member of the fund, and be eligible for re-admission as a new member.

For calculating the period of completed years of employment for the purpose of payment under this Act, every four years of employment under an Advocate if any, before the admission of a member to the Fund, will be computed as one year of employment and added on to the number of years of employment after admission. The number of years of employment will be decided in respect of each member in the manner prescribed.

Source: Section 16, Andhra Pradesh Advocates' Clerks' Welfare Fund Act, 1992 

For Advocates:

A member of the Fund should, on cessation of practice or suspension of practice, be entitled to receive from and out of the Fund an amount at the rate specified in the Act. The rates will be primarily dependent on the years of practice. For calculating the period of completed years of practice for the purpose of payment under this Act, every four years of practice at the Bar, if any, before the admission of a member to the Fund should be computed as one year of practice. This will be added to the number of years of practice after such admission.

A member, who completes thirty-five years of practice at the Bar and opts for Retirement Benefits, is entitled to receive half of the existing Death Benefit amount towards the Retirement Benefit.

A member of the Fund may opt for retirement benefits at any time after five years of his admission as a member of the Fund. However, he should be eligible for re-admission to the Fund as a new member subject to such conditions as may be prescribed

Source: Section 16, Andhra Pradesh Advocates' Welfare Fund Act, 1987

For Employees at Establishments:

Where an employee is placed under suspension pending an enquiry into grave misconduct, the employer should pay a subsistence allowance equivalent to 50% of the last drawn wage for the first six months. The subsistence allowance will become 75% of the last drawn wage beyond six months during the period of suspension. The total period of suspension should not however exceed one year in any case. If the misconduct is not established or the total period of suspension exceeds one year, the employee should be entitled to full wages during the suspension period and the period of suspension should be treated as on duty.

Source: Section 47, Andhra Pradesh Shops and Establishments Act, 1988

 

Unemployment Benefits in Maharashtra

For all Mathadis, Hamals, Manual workers, and Private Security Guards:

In case of employment of mathadis, hamals, manual workers, and private security guards, the State Government reserves rights to finalize time limits for payment of wages. Where an employer is found to be a defaulter, they may be asked to deposit an average amount of monthly wage payable to their employees.

Private security guards are entitled to full payment of wages even when the employers (usually security agencies) are unable to provide them with complete or partial employment despite the guards being available for duty.

Source: Section 3, Maharashtra Mathadi, Hamal and other Manual Workers' (Regulation of Employment and Welfare) Act, 1969

Section 3, Maharashtra Private Security Guards (Regulation of Employment and Welfare) Act, 1981

For all employees in Private Schools:

In case of aided schools, the names of terminated employees must be noted and kept for new opportunities created in other aided schools. Subsistence allowance of half wages is compulsory to employees under suspension. In case of the suspension being longer than 4 months, the amount can be increased, however, to not more than 50 percent. The amount may also be reduced upon convincing cause shown before the adjudicating authorities.

Where the authorities are convinced of the person’s innocence, they should be paid all wages, leaves, and allowances, due to a full-time worker, for their suspension period. The management must bear expenditure on pay and allowance of substitute, if any, appointed in place of the employee under suspension. Here, the period of an employee’s absence due to suspension must be treated as a period spent on duty.

Source: Section 25(a) of the Maharashtra Employees of Private Schools (Conditions of Service) Rules, 1981

For all factory workers:

Workers of factories are entitled to 50% of wages for a temporary period of non-working of the factories due to other orders/reasons. In case of a outage of power supply, they will be entitled to 100% of the wages. For the purpose of this calculation, the average wage of the working days of the month (immediately preceding) should be considered. In case of a non-full time working employee, the hours should be added to form a day. Employees would not be entitled for the same in case factories are closed because of strikes. Or, in case the worker did not accept an alternative work in a factory belonging to the same employer.  This is only if no special skill is required for the work and the site of work is within 8 km. radius.

Source: Section 3, Maharashtra Unemployment Allowance Payment to Workmen in Factories (For Temporary Period) Act, 1976 

For All Workers:

Every rural person willing to do unskilled manual work can be registered for the Employment Guarantee Scheme of their State. The State Government is supposed to provide employment, in case a registered person writes to an officer for employment of at least one month. Work should be provided preferably within the Panchayat Samiti area, however, never outside the district.  

In case of no employment within 15 days of the letter, the person will be eligible for an unemployment allowance as specified by the State. In any case, this cannot be less than Rs. 1 a day.  However, the liability ceases the moment an officer provides employment. The liability is also ceased in uncontrollable situations where the State Government is unable to provide work. In case the State Government cannot comply, the collector can write to the Village Panchayat to provide employment. This too will be deemed as employment under the Act.       

No person can claim allowance in case they did not respond to a work call in 7 days, and remained absent for more than a week, or a total one week in a month.  Such a person will be debarred from unemployment benefit for three months but can still get employment. Children older than the age of 15 years can only apply if there is not an able-bodied adult in their family.

Source: Section 8, Maharashtra Employment Guarantee Act, 1977

 

Unemployment Benefits in Karnataka

For workers in Shops and Commercial Establishments:

The subsistence allowance is to be paid by the employer to the employee on the date or dates on which the wages due to the employee would have become payable, if not for his suspension. And such payment will be made to:

  1. An employee who is placed under suspension. Such an employee is entitled to payment from the employer as subsistence allowance, an amount equal to fifty per cent of the wages which the employee was drawing immediately before their suspension, for the first ninety days reckoned from the date of such suspension.
  2. An employee whose period of suspension exceeds ninety days but does not exceed one hundred and eighty days. After the said period of ninety days, such an employee will be entitled to receive a subsistence allowance equal to seventy-five per cent of the wages which the employee was drawing immediately before their suspension.
  3. An employee whose period of suspension exceeds one hundred and eighty days. After the said period of one hundred and eighty days, such an employee is entitled to receive a subsistence allowance equal to ninety per cent of the wages which the employee was drawing immediately before their suspension.
  4. An employee whose enquiry or criminal proceedings is prolonged beyond the period of ninety days for reasons directly attributable to the employee. Such an employee is entitled to receive subsistence allowance, which can, for the period more than ninety days be reduced to fifty per cent of the wages, which the employee was drawing immediately before his suspension.
  5. An employee who is exonerated of the charge based on which his suspension was ordered. Such an employee is entitled to receive the subsistence allowance paid to them for any period. This allowance will be adjusted against the full wages allowed to them for the period of suspension.

Source: Section 3 of the Karnataka Payment of Subsistence Allowance Act, 1988

 

Unemployment Benefits in Uttar Pradesh

Where the State Government is satisfied in relation to an industrial undertaking- (a)  which is started or which or the management of which is acquired or otherwise taken over by the State Government under any law or agreement and is run or proposed to be run by or under the authority of such Government; or

(b) to which a loan, advance or grant has been given, or in respect of whose loans a guarantee has been given, by the State Government,

that it is necessary or expedient so to do in the public interest, with a view to enabling the continued running or restarting of the undertaking as a measure of preventing or of providing relief against unemployment, the State Government may, by notification in the Gazette, declare that with effect from such date as may be specified, the undertaking should be a relief undertaking.

Source: Section 3, U.P. Industrial Undertakings (Special Provisions For Prevention Of Unemployment) Act, 1966

 

Unemployment Benefits in Rajasthan

No State laws and provisions under this topic.

 

Unemployment Benefits in Tamil Nadu

For all labours:

Suspended employees are entitled to a subsistence allowance equal to 50% of their wage for less than 90 days of suspension, 75% after 90 days and before 180 days of suspension, and 100% after 180 days of suspension. However, in case of delay proven to be caused by the employee, the allowance may be reduced to 50%. The allowance request is unacceptable if the employee had accepted work somewhere else.  No refund for this allowance can be claimed from the worker. In case of no guilt proven, the employee should gain the remaining amount for the suspension as if they have worked in the period. The government retains the right to recover the due from employer in case of non-payment.

Source: Tamil Nadu Payment of Subsistence Allowance Act, 1981

For workers in Shops and Commercial Establishments:

Employees under the TN Shops and Establishments Act, will be eligible for full payment in case of any matter pending before the High Court.

Source: Tamil Nadu Shops and Establishments Act, 1947

 

Unemployment Benefits in Gujarat

If any employer fails, refuses or is unable to provide employment to an enrolled workman, the rate of unemployment allowance payable should be equal to 50 percent of the total basic wages and dearness allowance that would have been payable to him per day had he been provided with employment during the specified period.

If unemployment allowances to employees are due from an employer, the workman or anyone in his behalf authorised by him in writing, can make an application to the state government or one or more officers authorised by the state government. The application may pertain to any area or areas for the recovery of money due to him.

If the State Government or the authorised officer is satisfied that money is indeed due, either should issue a certificate for that amount to the Collector who should proceed to recover the same in the same manner as an arrear of land revenue.

The application needs to be made within one year from the date the money became an entitlement to the workman from the employer.

The application could be entertained after the expiry of 1 year only if the state government or authorised person is satisfied that the workman had sufficient reason for not making the application within the stipulated period.

Source: Section 3 and 5 of the Gujarat Payment of Unemployment Allowance to Workmen in Factories Act, 1981

 

Unemployment benefits in West Bengal

No State laws and provisions under this topic.

 

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