The causes and consequences of the unemployment insurance job stabilization return (enterprise job stabilization) policy

2020 02/24

What is "unemployment insurance stable job return"? In one sentence, it can be interpreted as "the unemployment insurance fund provides incentives to eligible enterprises to stabilize employees' positions."

First, let's take a look at the emergence of this policy, its survival and development process.

In November 2014, with the consent of the State Council, the Ministry of Human Resources and Social Security, together with the Ministry of Finance, the Development and Reform Commission and the Ministry of Industry and Information Technology, issued the Notice on Issues Related to Unemployment Insurance Support for Enterprise Stabilizing Jobs (Ministry of Human Resources and Social Security Fa [2014] No. 76), which for the first time made special provisions on "unemployment insurance stable job return", and the document also pointed out that the subsidy policy will be implemented until the end of 2020.

At the beginning of 2015, the State Council issued the Opinions on Further Doing a Good Job in Employment and Entrepreneurship under the New Situation (Guo Fa [2015] No. 23), expanding the implementation scope of the unemployment insurance fund's policy to support enterprise job stabilization from three types of enterprises to all eligible enterprises.

Subsequently, in 2017, the State Council issued the "Opinions of the State Council on Doing a Good Job in Employment and Entrepreneurship in the Current and Future Period" (Guo Fa [2017] No. 28), proposing that enterprises in the steel, coal, coal and power industries that do not lay off employees or lay off fewer employees should lower the threshold for job stabilization subsidies and raise the standard of job stabilization subsidies. In the same year, in view of the problems that still existed in practice, such as inadequate handling services and insufficient policy effects, the Ministry of Human Resources and Social Security issued the Notice of the General Office of the Ministry of Human Resources and Social Security on the Implementation of the "Escort Action" of Unemployment Insurance Aid to Enterprises to Stabilize Posts (Circular No. 129 of the Department of Human Resources and Social Security), deciding to implement the "escort action" of unemployment insurance assistance to enterprises to stabilize posts nationwide from 2018 to 2020.

On March 11, 2019, the Ministry of Human Resources and Social Security issued the Notice on Unemployment Insurance to Support Enterprises to Stabilize Employment (Ministry of Human Resources and Social Security [2019] No. 23) in accordance with the opinions of the State Council on the policy of job stabilization in accordance with the State Council's Several Opinions on Promoting Employment in the Current and Future Period (Guo Fa [2018] No. 39), and strengthened the policy in a written way.

This year is 2020, and there are no special circumstances that should still implement last year's policy, that is, the Ministry of Human Resources and Social Security [2019] No. 23. However, due to the current epidemic in China, and on December 13, 2019, the State Council issued the "Opinions on Further Doing a Good Job in Stabilizing Employment" (Guo Fa [2019] No. 28), pointing out that "increase assistance to enterprises to stabilize jobs". On February 5, 2020, the Employment Promotion Department issued the Notice of the Ministry of Human Resources and Social Security, Ministry of Education, Ministry of Finance, Ministry of Transport, and National Health Commission on Doing a Good Job in Employment Work During the Period of Epidemic Prevention and Control (Ministry of Human Resources and Social Security Mingdian [2020] No. 2), which provided guiding opinions on increasing the policy of job stabilization during the epidemic prevention and control period, and local governments have successively formulated and issued special regulations for their regions during the epidemic prevention and control period in accordance with the "Ministry of Human Resources and Social Security Mingdian [2020] No. 2". Enterprises or individuals who are interested in learning about it may wish to check on their local government website to understand local policies.

Next, we take a look at a table to learn more about what the policy means.

We mainly compare several special policy documents issued by the Ministry of Human Resources and Social Security (mainly Document [2014] No. 76 issued in 2014, Document [2019] No. 23 issued by the Ministry of Human Resources and Social Security in 2019), and the guiding policies issued during the recent epidemic prevention and control period (Mingdian [2020] No. 2 Document of the Ministry of Human Resources and Social Security) to specifically understand the policies for the return of enterprises and the changes in the state's support for unemployment insurance job stabilization returns since the implementation of the policies.

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Finally, if an enterprise receives the subsidy of this policy, can it be used at will?

Otherwise. The main purpose of the enterprise job stabilization policy subsidy is still closely related to employees, mainly used for employee living allowances, payment of social insurance premiums, job transfer training, skill upgrading training and other related expenses.


(This article is translated by software translator for reference only.)