Committee to Examine Feasibility of Unemployment Insurance

A Steering Committee has been established to examine the feasibility of introducing unemployment insurance.

The Committee has been formed following the positive outcomes achieved at a major joint labour market forum, hosted by the Ministry of Labour and Social Security, in partnership with the Planning Institute of Jamaica (PIOJ).

Minister of Labour and Social Security, Hon. Derrick Kellier, made the announcement in his contribution to the 2013/14 Sectoral Debate in the House of Representatives, on Tuesday, June 4.

The Committee was one of the expected outcomes of the forum, which involved international and regional specialists, who focused on the primary objectives of: sensitising stakeholders on how to operate an unemployment insurance scheme; generating discussion on the way forward and getting consensus on an alternative to redundancy payments; and offering recommendations on the development of a model for the unemployment insurance scheme for Jamaica.

“In recent times, the financial crisis and the attendant rise in layoffs and redundancies have brought attention to one benefit that is not currently offered. Unemployment Insurance has become an even more important topic for discussion, due to the economic challenges facing businesses, both locally and internationally,” Mr. Kellier stated.

When he addressed the two-day labour market forum at the Jamaica Conference Centre in early December last year, Mr. Kellier pointed out that the only legal provision in Jamaica for workers who are separated from employment, is the Employment Termination and Redundancy Payments Act, which governs matters of termination and dismissal, and makes provisions for redundancy and lay-offs.

He noted however, that the provisions under this Act do not provide the social protection that should be associated with redundancy payments.

Contact: Alphea Saunders