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CASH BENEFIT

Terms of recognition

A person entitled to cash benefit is the person with the uninterrupted length of insurance coverage of minimum 12 months, or a person with interruptions in the insurance coverage in the last 18 months. An interruption shorter than 30 days is considered an uninterrupted length of insurance.

An unemployed person is entitled to cash benefit in cases of employment termination or in cases of compulsory insurance termination, on the basis of:

1. employment termination resulting from dismissal by the employer, if, due to technological, economic or organizational changes, the need for certain job ceases to exist, or if a decrease in the volume of business occurs. The above is not valid for persons who have, pursuant to the Decision of the Government on determining programmes for solving the issue of redundancies in the process of rationalisation, restructuring and preparation for privatisation, out of their own free will, opted for cash allowance or special cash allowance in the amount higher than the amount of the dismissal payment stipulated by the Labour Law, or if the employee does not deliver working results, that is, has no necessary knowledge or skills for performing the activities stipulated by his position;
2. termination of a time-limited employment, temporary employment or odd job, as well as trial work;
3. termination of office of elected, nominated or appointed persons, if the rights to dormancy of employment or salary compensation are not exercised;
4. transmission of founder’s rights of the business company owner or member;
5. initiating bankruptcy, dissolution proceedings or other cases of cessation of business of the employer;
6. transferring of the spouse to another post; and
7. termination of employment abroad.
   

Exercising the right

An unemployed person is entitled to cash benefit as of the first day of the cessation of compulsory insurance, if he submits the application to the National Employment Service (branch or sub-branch he is registered with), within the period of 30 days since the termination of employment or termination of compulsory insurance. The unemployed person submitting the application after the expiration of the period of 30 days is entitled to cash benefit as of the day of submitting the application. The unemployed person submitting the application following the expiry of the time period he would be entitled to receive cash benefit for is not entitled to thereof. The period of time the unemployed person was temporarily disabled to work pursuant to the regulations on health insurance, is not included in the period of 30 days within which he is to submit the application.

Basis for determining cash benefit amount

Basis for determining cash benefit amount is the average salary, namely the salary or sickness cash benefit of the unemployed person pursuant to the law in the last six months preceding the month of employment termination or insurance cessation. Cash benefit is determined in the amount of 50% of the basis stipulated by the law. Cash benefit can be neither higher than 160% nor lower than 80% of the minimal salary determined in accordance with the labour regulations for the month the cash benefit is being paid for.

Duration of cash benefit payment

Cash benefit is to be paid to unemployed persons:

- in the period of three months, if their insurance coverage length is one to five years;
- in the period of six months, if their insurance coverage length is five to 15 years;
- in the period of nine months if their insurance coverage length is 15 to 25 years, and
- twelve months if their insurance coverage length is longer than 25 years.

Exceptionally, cash benefit can be in the duration of 24 months in cases of unemployed persons with up to two years left to meet eligibility conditions for exercising the right to retirement (in accordance with the regulations on retirement and disability insurance).

A year of the insurance coverage length is considered the period of completed 12 months of compulsory insurance coverage.

Unemployed person receiving cash benefit is to report to the National Employment Service in person every 30 days.

Continuation of cash benefit payment and lump-sum benefit

Payment of cash benefits is to be continued throughout:

1. the duration of additional education and training, in accordance with the individual employment plan;
2. temporary disablement determined in accordance with the regulations on health insurance, but not longer than 30 days from the day of temporary disablement commencement;
3. parental leave, absence from work due to child care and absence from work due to special child care.

Cash benefit can, at the unemployed person’s request, be paid out as a lump-sum in the aim of self-employment.

Discontinuance of payment

Cash benefit payment is to be discontinued during the period the rights stemming from the unemployment are to be dormant, specifically throughout:

1. the duration of contracts on performing temporary and casual work;
2. the duration of regular or additional compulsory national military service;
3. the duration of a prison sentence, a passed security, corrective or protective measure, in the period of up to six months; and
4. the duration of staying abroad in cases when the unemployed or the spouse is posted abroad within the international and technical, or educational and cultural cooperation to work in diplomatic, consular or other missions.

Upon the cessation of the above-stated reasons, the unemployed exercises the right to cash benefit payment for the remaining period of time the right to cash benefit is recognised for, if reporting to and submitting an application for exercising the rights within 30 days.

Cessation of the right to cash benefit

Beneficiary’s right to cash benefit ceases if:

1. the beneficiary’s name is withdrawn from the records;
2. keeping the record on the beneficiary discontinues;
3. the beneficiary does not, within five days, inform the National Employment Service on the change being the condition or the basis for acquiring, exercising or cessation of the right to cash benefit;
4. the competent body determines that the beneficiary is employed with an employer without the employment contract or the contracts on temporary and casual work; and
5. the beneficiary submits the request for the termination of the right.

The unemployed person whose right to cash benefit has ceased can exercise this right again if meeting the conditions for acquiring the right to cash benefit, although the period for which the beneficiary has already exercised his right to cash benefit cannot be included in his insurance coverage length.

For the unemployed person whose right to cash benefit has ceased due to taking up employment or exercising the right stemming from other bases, the right to cash benefit is continued for the remaining period of time and in the prescribed amount before the expiration of the period the right to cash benefit is recognized for, if the beneficiary becomes unemployed again or if it be more favourable for the beneficiary.