Riigikogu started amending of Employment Contracts Act
The Riigikogu discussed at the first reading the Bill on Amendments to the Employment Contracts Act and Associated Acts (518 SE), initiated by the Government, the purpose of which is to ensure sustainability of the unemployment insurance fund. The amendments in the benefits schemes are intended for reducing the burden on the assets of the unemployment insurance fund. The Bill concerns the amendments in the regulation of unemployment insurance which are due to enter into force on 1 July. Amendments are made in the substitution rates of the unemployment insurance benefit in case of unemployment and in the entry into force of the unemployment insurance benefit of the insured persons who terminate the employment or service relationship on own initiative or by agreement of the parties. The Bill suspends payment of the unemployment insurance benefit to people who cease employment on own initiative or by agreement of the parties until 2013. In comparison to the provisions of the Act passed on 17 December 2008, the unemployment insurance benefit will be reduced to 50 per cent instead of the current 70 per cent in the first hundred days and to 40 per cent instead of the current 50 per cent starting from the 101st day until the 360th day. Members of the Riigikogu had many questions to the Minister of Social Affairs Hanno Pevkur who had made a report. Due to the end of the working hours of the Riigikogu sitting, the discussion of the issue was adjourned. The reading will be resumed at tomorrow’s sitting.
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