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MOLDOVA STATE UNIVERSITY LAW FACULTY

Social guarantees and compensation in case of job loss


Individual Work

Petru Mitu

21.03.2014

Social guarantees and compensation in case of job loss


The social guarantee in case of job loss consist of those material helping actions which state and the society can offer to , in case of job loss. A big special condition is reaching the age of 18 and to have a status of unemployed. According to the law, there are established the following categories of guarantees: 1) Assistance (allowance of unemployment) 2) Payments given to unemployed in the period of temporary disability 3) Maternity leave assistance 4) Material assistance An important social guarantee is the procedure of calculating the contribution period. The time in which the unemployed receives de allowance and material assistance is considered to be the length service of work and it not suspends the contribution. For the funding the measures regarding the usage of workforce in the framework of Social Insurance Agency from Republic of Moldova, there was created the Unemployment Fund which consists of : a) Mandatory social insurance contributions reported monthly payroll to individuals and companies that hire staff; b) Compulsory social security contributions related to calculated basic monthly salary from employees natural and legal persons; c) Resources provided in the state budget for social protection of the unemployed, in compliance with legislation d) Financial means transferred under contracts and agreements with other countries e) Resources transferred from other special funds f) Voluntary contributions from other natural persons or legal entities g) Income from services related to the use of workforce h) Accumulated resources of recourse claims i) Resources coming from penalty charges

Financial means accumulated from Unemployment fund is used to: Implementation of measures to stimulate the utility workforce, including uncompetitive population Professional training and requalification of the unemployed, place them in the workforce

Training the of the unemployed in paid public works Funding the studies, reports and analyzes of labor market specialized institutions ordered by the Minister of Economy and Trade

Creation and maintenance of the system of labor market information, information on the general population about the demand and supply of workforce

Payment of unemployment benefits and allowances provided by law, of the unemployed Other aim provided by the Law

Fund of financial means are not taxable nor subject to customs duties and stamp. The formation and distribution of the fund is established in unemployment fund Regulation, approved by the Director of the National Social Insurance of the Republic of Moldova.

Measures of social protection of citizens who are looking for workplace


Social protection of persons seeking employment is achieved through active measures and passive measures. Active measures include incentives for employment, vocational guidance and training of the adult population of persons seeking employment. These measures are targeted at people looking for a job and employers. Passive measures include the payment of cash benefits for limited periods, differentiated according to the law. Beneficiary is the person looking for a job: 1) The unemployed has no record labor book has no job and length of service in the state social insurance system; 2) individual labor contract has been terminated by reason of: a) dismissal; b) resignation; c) some circumstances that do not depend on the will of the parties; d) the expiry of the contract 3) which ceased to work renounce to the authorization (license) to conduct a business activity based or patent; 4) which ceased to work abroad under the preliminary conclusion of an individual contract of social insurance; 5), which returned to the labor market: a) after the expiration of child care; b) after a period of care of a disabled family member degree of a disabled child (under the age of 16 years) or elderly people (75 years and older);

c) after the release of reserve military service, short-term military service or alternative service; d) after advise the medical expertise of vitality that is not offered the opportunity to hold a job properly; e) after release from the detention facility or institution for social rehabilitation. 6) which is a foreign citizen or stateless person arrived in Moldova and family migration documented permanent or temporary residence, excepting migrant workers, students and foreign students. In Moldova, each person is guaranteed the right to freely choose their profession and work, and the right to security in the event of unemployment. The labor market in Moldova is free and is the affirmation of the rights of labor and social protection of persons able to work. National and territorial situation and developments on the labor market are monitored by a system of statistical indicators. The statistical indicators and the methodology of calculation shall be determined by the National Bureau of Statistics jointly with the Ministry of Labor, Social Protection and Family. National Agency for Employment creates and manages the information system of the labor market, which includes primary documents and their data bases, information of all participants in the labor market. Active measures to stimulate employment is achieved through specialized services provided by agencies or other providers of similar services in the public or private sector. Active measures to stimulate employment are: a) increasing employment opportunities for people looking for a job; b) stimulating employers to hire the unemployed and creating new jobs; c) encouraging employers to employ graduates of higher education institutions. Increasing employment opportunities for people looking for a job is done by: a) labor mediation b) information and counseling; c) advice and assistance for starting a business activity; d) subsidizing labor costs; e) stimulating labor mobility; f) orientation and training. Passive measures of social protection of the unemployed include: a) granting unemployment benefits; b) granting allowances for integration or reintegration. Procedures for granting unemployment benefits and integration or reintegration allowance is established by the Government. Beneficiaries of unemployment benefits, and the benefits of integration or reintegration are insured in the state social insurance and have all the rights provided by the law on social insurance system. Social insurance rights of individuals are covered by the state social insurance budget. Unemployment benefits and allowances integration or

reintegration of unemployed is given monthly through banks. The period for receiving unemployment benefit and allowance integration or reintegration is contribution period and secure in his employment by the agency. People who, when applying rights unreasonably refuse a job properly or participation in services employment incentive offered by agencies do not receive unemployment benefit, allowance integration or reintegration. Unemployed registered at the agency, including unemployment benefit recipient or the integration or reintegration allowance, shall: a) report to the Agency, including the Agency's request in order to receive support for the employment or to engage in active measures to stimulate employment; b) actively participate in labor mediation services and other employment services employment offered by the agency to which it is registered; c) notify, within three days, the agency which is registered any change in the conditions that led to the status of unemployed. Incentives for employment and social protection of people looking for work are funded by the unemployment fund. Unemployment Fund shall consist of compulsory contributions by employers and employees, as well as the state budget allocated to him. Unemployment Fund budget is part of the state social insurance budget. From the unemployment fund contributions are used to implement measures to stimulate employment and social protection of persons seeking employment, the risk insured against unemployment. The means of the state budget of the Unemployment Fund is used to stimulate employment and social protection of people looking for a job uninsured against unemployment risk. Persons insured against the risk of unemployment is considered the people who work and have an employment record of the state social insurance system for at least 6 months.

MOLDOVA UNEMPLOYMENT RATE


Unemployment Rate in Moldova increased to 4.10 percent in the fourth quarter of 2013 from 3.90 percent in the third quarter of 2013. Unemployment Rate in Moldova is reported by the National Bureau of Statistics of the Republic of Moldova. Unemployment Rate in Moldova averaged 6.74 Percent from 2000 until 2013, reaching an all time high of 13 Percent in the first quarter of 2006 and a record low of 3 Percent in the second quarter of 2008. In Moldova, the unemployment rate measures the number of people actively looking for a job as a percentage of the labour force. This page provides - Moldova Unemployment Rate - actual values, historical data, forecast, chart, statistics, economic calendar and news. The Unemployment rate of can be defined as the number of people actively looking for a job Divided by the

Labour Force. Changes in Unemployment depend mostly on inflows made up of non-employed people starting to look for jobs, of employed people who lose jobs and look for new their ones and of people who stop looking for employment.

Bibliography
1)Dreptul protectiei sociale Nicolae Romandas, Ludmila Proca , Ina Odinokaia Negura Chisinau 2011 2)Legea nr. 102-XV din 13.03.2003 cu privire la protectia sociala a persoanelor aflate in cautarea unui loc de munca 3) http://www.tradingeconomics.com/moldova/unemployment-rate

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