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Social Affairs Minister Isaac Herzog
Photo: Gil Yohanan

New guidelines for unemployment benefits planned

Recent layoffs prompt social affairs minister to instruct National Insurance Institute to formulate new, flexible directives meant to make stipends more accessible, especially for low-income workers

Social Affairs Minister Isaac Herzog announced Thursday that he had ordered the National Insurance Institute of Israel (NII) to formulate new guidelines simplifying the process of claiming unemployment benefits.

 

The decision followed the first signs of recession in the Israeli market and the latest slew of layoffs by Israeli firms.

 

The NII was asked to present its plan by next week, and include special provision for low-income workers. "The guidelines for unemployment benefits eligibility, set when Benjamin Netanyahu  was in power, are very rigid," said Herzog.

 

"One of the goals of the NII is to meet social challenges. The National Insurance Institute is the citizen's safety net, and in a crisis situation, unemployment benefits are that safety net, and are given for up to six months."

 

Herzog told Ynet he was aware that the Finance Ministry is likely to oppose the plan: "We will negotiate this plan, even if the Treasury tries to get the government's backing (for blocking it). I completely agree with the prime minister's statement urging employers to think before they fire people."

 

'Government must take action now'

As for the plan playing a potential role in the nearing general elections, the social affairs minister said that he believed unemployment will indeed be a key issue in the various parties' campaigns.

 

"I think it will be at the heart of the next election. We disagree with the Treasury and we say that in light of the layoffs and the financial crisis, it should allow for the proper budgetary leeway."

 

Yossi Farhi, director-general of the Employment Service, called on the government to intervene in the situation immediately: "A recession won't be just the Employment Service's problem. Massive State intervention is needed for infrastructure, factories and credit," he said.

 

Prime Minister Ehud Olmert addressed the situation at a speech given on Wednesday night, at the Prime Minister’s Conference for Export and International Cooperation in Jerusalem.

 

Olmert urged local corporations to carefully consider their actions before announcing layoffs: "You must remember that the human capital is just as important as the monetary one," he said.

 

"Even if layoffs seem like a very tempting solution, the long-term damage to the business is much greater."  

 


פרסום ראשון: 11.13.08, 13:37
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