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Saturday, 20.04.2024, 10:52
Unemployment insurance for board members in Estonia would cost EUR 10 mln a year
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In accordance with the bill, a board member of a company would be entitled
to registration as unemployed if they receive no remuneration for the
performance of their duties as member of the management board and have an
unemployment insurance period of at least 12 months during the 36 months prior
to registration as unemployed.
According to an estimate by the Unemployment Insurance Fund, costs related
to the registration of managers of companies as unemployed would total 9.4
million euros in 2018, 10 million euros in 2019 and 10.5 million euros in 2020.
The purpose of the bill is to eliminate a contradiction with
the Constitution contained in the current conditions for the registration
of managers of companies as unemployed and payment of the unemployment
insurance benefit to them. The current law excludes members of the management
of a company from registration as unemployed even if they have simultaneously
with the performance of duties of board member been employed under an
employment contract and paid the unemployment insurance premium.
The Supreme Court declared the said provisions unconstitutional on May 11.
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