This is al allowance provided for the loss of employment. this allowance is paid for a maximum period of one year at the rate of 50% of the average daily wage he earned during the last 4 contribution periods prior to the date of loss of employment. The loss of employment should be due to permanent closure of the factory or retrenchment or due to permanent invalidity of not less than 40% arising out of non employment injury. In case of closure, the closure should be certified by the competent authority such as Chief Inspector of Factories, Labour Commissioners etc. and in case of permanent invalidity, documents supporting such an invalidity should be produced.
Conditions to be satisfied by the employees to get the unemployment allowance are as follows.
1. The person should be an Insured Person as on date of loss of Insurable employment on account of Permanent Closure/Retrenchment/Permanent Invalidity of at least 40% due to non EI.
2. The person should have completed at least 3 years of service as on the date of loss of employment. But these 3 years need not be with a single employer and also it need not be in a single stretch. Completion of one year of service means payment of contribution for 1256 days in two successive contribution periods. Similarly payment of contribution for 78 days in a contribution period will be counted as a half year of service.