Partial unemployment benefits for employees

The Cabinet of Ministers of Ukraine recently approved Order №702, which replaced the prior order of assistance due to quarantine. Now employees and entrepreneurs can receive partial unemployment assistance due to martial law.
Earlier we told you how an entrepreneur can get partial unemployment assistance. Now let's talk about how employees can get financial aid.

Who can get financial assistance?

Financial assistance is provided for employees who lose part of their income due to a shutdown or reduction in production.
According to Order №702, reduction of production is a temporary stoppage or reduction of economic activity due to economic or technological reasons, introduction of an emergency, martial law or quarantine. As a result, the employee's working hours were reduced and income was lost.
This means that if the length of working time was reduced at the employer's initiative, the employee is entitled to receive assistance.
Such assistance is not available to

• part-time employees,
• employees performing non-military service,
• employees who refuse to transfer to another full-time job,
• employees of the Social Security Fund,
• employees of public authorities.

The employer must apply to the employment center to receive partial unemployment benefits for employees.
Conditions for financial assistance eligibility:

• The reduction in production has affected at least 20% of employees, and the employees' working hours have been reduced by at least 30% per month,
• The Uniform Social Security Contribution has been paid for the previous 6 months for each employee for whom the benefit is being applied for,
• the employer has no debts on the payment of the Unified Social Tax and no debts on the employees' salaries.

Allowance will be denied if:

• the decrease in production is seasonal,
• the employer is in the process of liquidation,
• the employee is on leave without pay,
• the company announced a downtime,
• the employment contract is suspended.

Amount of financial assistance

Financial assistance will be paid for each month of reduction in activity, but no more than 180 calendar days cumulatively during 36 months.
The amount of the allowance will be calculated in proportion to the employee's reduced working hours. The calculation should be for each employee separately, according to the formula:
The amount of the allowance = wage rate or average wage divided by the number of hours of normal working hours per month multiplied by the number of hours the employee has worked.
The amount of allowance cannot be more than 50% of minimum wage, i.e. maximum 3,250 UAH.

How to get financial assistance?

To receive partial unemployment benefits for employees, the employer must submit an application and a list of employees to the Jobcenter. There are 90 calendar days for application from the date of reduction of economic activity. The application can be submitted in person or electronically.
Within 5 working days, the employer will receive a decision on granting assistance or refusal.
After receiving the allowance from the Employment Center, the employer has three working days to transfer the funds to the employees. It is not allowed to pay the allowance in cash.
Within five calendar days after the transfer of funds to employees, the employer must provide the Employment Center with a copy of the information on the payment of funds.