Short-term assistance for those left vulnerable

THE Employment Insurance System (EIS) Bill is going back to Parliament this month.

This is after discussions with stakeholders reached a consensus that the contribution rates will be reduced from the initial 0.5% of monthly wages each from employers and employees.

During the discussions, employers tried to revive their earlier stance that the EIS benefits shall only be paid to employees who are not paid employment termination and lay-off benefits (ETLB) by reason of employers’ failure and/or refusal to pay.

Some even suggested that those entitled to retrenchment and lay-off benefits under a collective agreement’s (CA) terms of employment should not get EIS.

Others have said this move would be unfair and prejudicial to employers who are generous enough to provide additional benefits in the CA.

It is also unfair to their employees, who also have to contribute to EIS but will not be able to claim it.

The main objective of EIS is to provide emergency and temporary aid to retrenched workers for up to six months, when they are most vulnerable.

Loss of employment is loss of livelihood. It leaves retrenched workers in despair and with serious concerns on how to pay their bills.