Assignment of unemployment insurance payment

What is the unemployment insurance payment?

Monthly cash paid by the insurer to the insured in the event of an insured event.

What is an insurance case?

The case that serves as the basis for the payment of the insurance indemnity to the insured person.

Who is considered as insured person?

Employees who have concluded an employment contract with an employer and are insured against unemployment in accordance with the laws of the Republic of Azerbaijan.

Who is considered as an insurer?

• State authorities;
• Individuals;
• Heads of elected bodies.

Who can apply for unemployment insurance?

Insurance payment is applied to people who have terminated labor relations due to the liquidation of a state authority or legal entity, staff reduction, or expiry of the labor agreement, as well as to those registered as unemployed in the Ministry of Labor and Social Protection of the Population of theRepublic of Azerbaijan in the manner prescribed by the Law of the Republic of Azerbaijan "On Employment."

What articles of the Labor Code are meant by the abolition of a state body or legal entity, the number of employees or the reduction of staff?

Accordingly, paragraphs a and b of Clause 70, as well as items 33.1.2 and 33.1.3 of the Law on Civil Service, are envisaged respectively if a person worked as a civil servant at his or her last place of employment.

What should a person dismissed under the relevant articles do?

A person entitled to receive insurance benefits must initially be registered with the local branches of the State Employment Agency or the DOST Centers under the Ministry of Labor and Social Protection of Population. Within 5 working days, the relevant executive authority shall make a decision on the purpose of insurance payment if the applicant is not offered a suitable job or is refused a vacancy by the employer (employers). Then, the person submits an application and the documents to be attached to the application to receive the insurance payment, and the insurance payment is determined.

How are insurance rates regulated for the parties?

On insurance premiums paid by the insurer - 0.5 percent of the calculated labor remuneration fund;

On the insurance premium paid by the insured - 0.5 percent of the employee's salary.

In which case is the main insurance payment assigned to the applicant?

If the applicant is dismissed in accordance with Clause 68, paragraph 2b of the Labor Code, for a period of 36 consecutive calendar months prior to the onset of unemployment, a fixed-term employment contract of 35 months and, with Clause 70, paragraphs a and b of the Labor Code and the Law on Civil Service if dismissed in accordance with Clause 33.1.2 and 33.1.3, respectively, shall be determined if he/she has worked for more than 12 calendar months during the 24 calendar months preceding the beginning of unemployment.

In what cases is a coefficient of 1.2 applied to the main insurance payment?

According to Clause 146 of the Labor Code of the Republic of Azerbaijan, a coefficient of 1.2 is applied to the insurance payment for persons released on group leave in connection with the termination of work at the enterprise.

What is meant by addition to the basic insurance payment?

If the recipient has a child under the age of 18 under his / her care (full-time students and pupils until graduation, but not older than 23), his / her basic insurance payment is added to the basic insurance payment at the rate of 5% per child, but not more than 20%.

When an insurance benefit is assigned to both spouses in the family, how is it determined in addition to their basic insurance payment?

By law, only one of them has the right to receive an addition to the basic insurance payment.

How long is unemployment insurance paid?

Unemployed persons dismissed as a result of liquidation of a state body or legal entity, or reduction of the number of employees or staff shall be appointed for 6 months at the time of initial application and 3 months at the time of re-application. Unemployed persons dismissed under the expiration of the employment contract are appointed within 3 months. Re-insurance payments to these persons are not allowed.

What interest rate is applied to the amount of his / her average monthly salary for the person for whom the main insurance payment is made?

The insurance indemnity is calculated as 50 percent of the lost average monthly salary, regardless of the length of insurance.

Note: The amount of the insurance indemnity may not exceed the average monthly salary of the previous year and may not be less than the minimum insurance indemnity determined by the relevant executive authority.

How is the average monthly salary determined to calculate the insurance payment?

It is determined based on the information on the monthly salary of the insured in the reports on insurance premiums within the electronic information system of the Ministry of Labor and Social Protection of the Population.

What is the rate of insurance payment for the first time?

• 100 percent for the first 2 calendar months;
• 80 percent for the 3rd and 4th months;
• 70 percent for the 5th and 6th months.

What is the amount of insurance payment in case of repeated application?

Upon repeated application, the minimum insurance premium is paid (in equal amounts for each month).

What is an individual employment program?

The Individual Employment Program includes proposals from the relevant executive authority on suitable work and professional training as well as additional education and paid social work. The person receiving the insurance payment must submit a report on the implementation of this program in person once a month.

In what cases can the insurance payment be suspended?

Pursuant to Clause 18 of the Law of the Republic of Azerbaijan “On Unemployment Insurance,” unemployment insurance payments may be suspended in the following cases:

• If the person receiving the insurance payment is provided with a job;
• If the person receiving the insurance benefit fails to implement the individual employment program without a valid reason;
• Upon expiration of the period provided for by law for payment of insurance indemnity;
• If the person receiving the insurance indemnity is employed without informing the relevant executive authority during the period of receiving the insurance indemnity;
• If the person receiving the insurance indemnity violates the terms and conditions of registration or re-registration as unemployed in accordance with the procedure established by the relevant executive authority;
• When the person receiving the insurance payment is reinstated in accordance with the law;
• When the person receiving the insurance payment refuses suitable work offered to them;
• When the person receiving the insurance payment is admitted to a higher or secondary special education institution;
• When a person receiving an insurance payment is called up for military or alternative service or military gatherings;
• If there is a valid court decision on deprivation of liberty or application of compulsory medical measures against the person receiving the insurance indemnity;
• If there are grounds for awarding an old-age pension to a person receiving an insurance benefit by the Law of the Republic of Azerbaijan “On Labor Pensions”;
• In case of discovery of distorted or illegal information in the documents submitted by the person receiving the insurance indemnity;
• In case of death of the person receiving the insurance indemnity or being declared missing or dead on the basis of a court decision that has entered into force;
• When an application for deregistration as unemployed is submitted by the person receiving the insurance benefit.