Unemployment

In European Union countries, citizens depend on the unemployment insurance system of the country of residence at the moment of job loss.

Should job loss intervene in the host country, European employees are accompanied locally, based on the local system. They can carry out the rights to their home country; but that can only work for a limited period (3month). During this period, the unemployment allowance is equivalent to what they would have got in the expatriation country. EEC citizens living in another European country must fulfill local obligations. At the end of the 3 month period, they must come back in the host country, if they want to remain eligible to unemployment benefits.

On the other hand, it is the home country system that applies when loss of employment takes place in the home country, at least one day after the return of the employee back to the mother company. Periods of contributions are in this case transferred and rights are determined as if the employee had worked and paid contributions in his country.

Outside of the European Union, situations vary and depend on whether the employee was recruited primarily in his home country or directly in the country of expatriation.

* In the first case, the employee will have kept a legal link with the company that had originally recruited him in the home country. In France, companies in such situations are required to affiliate their expatriate employees to the French unemployment benefit system.

* In the second case, The employee generally won’t be eligible to the home country’s system, unless he persuaded his employer in the host country to contribute on a voluntary basis to an existing system such as the CFE system in France.

 

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