Foreign worker's right to unemployment benefit.

Who qualifies for it, how to apply & what to do if the application is rejected,

January 2010: A foreign citizen who is unemployed can qualify to obtain the ordinary unemployment benefit if he/she meets the conditions set by the Law. Ordinary unemployment benefit is meant to help the worker get financial assistance in place of income from work.

Who qualifies for ordinary unemployment benefit?

The benefit is meant for subordinate workers who have not chosen to be unemployed, and therefore don't have an income due to any of the following reasons: dismissal, suspension due to lack of job, expiry of a work contract. Those who have willingly decided to resign from work, except those on maternity leave and those who have resigned due to a justified reason (lack of payment, sexual harassment, mobbing, etc) don't have a right to ordinary unemployment benefit.

Even workers who have been suspended from work because the company has been hit by a temporary crisis that has not been caused by either the workers or the employers (scarcity in work, market crisis, etc) also have a right to ordinary unemployment benefit. Foreigners with the Permit of Stay for seasonal work don't qualify for ordinary unemployment benefit since they are excluded from involuntary unemployment contributions.

Requirements

In order to qualify for ordinary unemployment benefit, one must meet the following conditions:

·        Be unemployed. The certificate showing unemployment status is obtained by reporting to the competent Employment Centre (Centro per l'impiego) and undersigning a declaration in which the worker states the work done previously and declares availability to work.

·         Must have made contributions for involuntary unemployment benefit for at least two years before the date of unemployment.

·        Must have made at least a year's contributions (equivalent to 52 weeks in the last two years before the date of unemployment).

·        Must have capacity to work

Application 
The application for unemployment benefit must be made at the local INPS office (or the Employment Centre or through the Benevolent institutions-Patronati) within 68 days of ceasing work. The following documents must be attached to the application: 

·        Declaration from the last employer or a self-certificate showing information regarding the last work done.

·        Certificate of enrolment with the unemployment listings.

·        Application for Irpef tax relief .

The forms for applying for Irpef tax relief are available at the offices and on the website of INPS. Here’s the link:www.Inps.it, on section "moduli" (forms). The allowance is given from the 8th day of ceasing work if the application is submitted within 7 days. In all other cases, it is given from the 5th day from the moment the application is submitted.

Amount

The amount to be received as ordinary unemployment benefit is fixed at 60% of the gross monthly pay for the first six months, and in any case within the limits of a gross monthly maximum that is set at 886,31 Euros, rising to 1.065,26 Euros for workers who can claim a gross monthly wage greater than 1.917,48 Euros. These amounts are usually increased every year depending on inflation rate computed by Italian Institute of Statistics (Istituto nazionale di statistica - ISTAT). In 2009, the following rule was applicable:

·        Workers who are younger than 50 years have a right to receive the allowance which is equivalent to 60% of the salary for the first six months, then it is lowered to 50% of the salary for the seventh and eighth month.

·        Workers aged 50 and over have a right to receive the allowance which is equivalent to 60% of the salary for the first six months, then it is lowered to 50% of the salary for the seventh and eighth month, and finally to 40% for the subsequent months.

Duration

The maximum period for receiving unemployment allowance is eight months. Those aged over 50 can receive the allowance for 12 months.

Suspended workers can receive the allowance for a maximum of 90 days. The amount is equivalent to the 60% of the gross monthly pay.

Attention

The worker must notify INPS immediately of any new hiring, even for a short time (such as one day), change of address and account number.

Loss of unemployment benefit

One loses the right to unemployment benefit if he/she:

·        Has received the benefit for the whole period foreseen by the law.

·        Gets another job.

·         Becomes holder of direct pension (old age pension, seniority, etc).

·        Is removed from the unemployment listings,

·        Refuses to take up a job whose pay is not 20% lower than the previous job.

·        Refuses to take up social utility jobs

Appeal

In case one's application for unemployment benefit is rejected, an appeal can be made on simple paper to the Provincial Committee of INPS within 90 days of receiving the notification. 

The appeal can be submitted directly to the office of INPS that rejected the application, sent by post by registered mail with return receipt, or submitted through the authorised Benevolent Institutions (patronati).

Reduced unemployment benefit

This is unemployment benefit meant for subordinate workers who've worked for a limited period of time, have not made 52 weekly contributions in the last two years, but have worked for at least 78 days in the previous year including public holidays and paid leave of absence. 

  Requirements

In order to qualify for reduced unemployment benefit, one must meet the following conditions: 

·        Have made contributions for involuntary unemployment benefit for at least two years,

·        Have been a subordinate worker for at least 78 days in the period being referred to,

Application

The application for reduced unemployment benefit must be made at the local INPS office within 31st March of the year after cessation of work.

 
The following documents must be attached to the application: 

·        Declaration from the last employer,

·        Application for Irpef tax relief,

The forms for reduced unemployment benefit, and the form for applying for Irpef tax relief are available at the offices and on the website of INPS at this link: www.Inps.it, on section "moduli" (forms).

The amount to be received as reduced unemployment benefit is fixed at 35% of the worker's average daily earnings for the first 120 days, then it is lowered to 40% for the subsequent days.

The highest amount one can receive as unemployment allowance is equivalent to 858,58 Euros, rising to 1.031,93 Euros for workers who can claim a gross monthly wage greater than 1.857,48 Euros.  The reduced unemployment benefit is given for a maximum of 90 days.

The amount is fixed at 35% of the past year’s pay, divided by the number of days of actual work.

Unemployment benefit for workers on project contract

On 26th May 2009, INPS issued a Circular letter extending the Unemployment benefit to workers on project contract (lavoratori a progetto). This will be done on experimental basis for the period 2009-2011. The Unemployment benefit is given only once and is fixed at 20% of the worker’s salary in the past year. In order to qualify for it, one must meet the following conditions: 

·        Must be enrolled in a special scheme at INPS,

·        Have worked for only one employer,

·        Income in the past year must be between 5.000 and 13.819 Euros,

·        Have made contributions for involuntary unemployment benefit to the special scheme at INPS for at least three months (and not more than 10 months in the previous year).

The application must be made at the local INPS office within 30 days of cessation of work, attaching a declaration in which the worker declares availability to work.

For further information, please contact INPS using this Toll free number: 803 164.

Attention

Applications will only be examined if the forms are properly filled in (providing all the necessary information) and

all required documents attached.